Crown Castle International Reports Third Quarter 2011 Results; Raises 2011 Outlook and Provides 2012 Outlook
HOUSTON, Oct 25, 2011 (GlobeNewswire via COMTEX) --
Crown Castle International Corp. (NYSE:CCI) today reported results for the quarter ended September 30, 2011.
"We had an excellent third quarter, exceeding the high-end of our Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA and recurring cash flow," stated Ben Moreland, President and Chief Executive Officer. "Further, the contribution from the network services portion of our business exceeded our expectations, delivering the highest contribution to gross margin in its history. As a result of our strong performance, we have increased our full year 2011 Outlook, which now suggests annual recurring cash flow per share growth of 18% compared to 2010. As I look forward to the balance of the year and to 2012, we are excited to be assisting with and benefiting from significant network upgrades by the three largest carriers, each of which is adding capacity to create a higher quality mobile Internet experience."
CONSOLIDATED FINANCIAL RESULTS
Total revenue for the third quarter of 2011 increased 7% to $514 million from $482 million for the same period in 2010. Site rental revenue for the third quarter of 2011 increased $32 million, or 7%, to $469 million from $437 million for the same period in the prior year. Site rental gross margin, defined as site rental revenue less site rental cost of operations, increased $26 million, or 8%, to $347 million in the third quarter of 2011 from $321 million in the same period in 2010. Adjusted EBITDA for the third quarter of 2011 increased $26 million, or 9%,to $332 million from $306 million in the same period in 2010.
Recurring cash flow, defined as Adjusted EBITDA less interest expense and sustaining capital expenditures, increased 12% to $199 million for the third quarter of 2011, compared to $178 million in the third quarter of 2010. Recurring cash flow per share, defined as recurring cash flow divided by diluted weighted average common shares outstanding, grew 13% to $0.70 in the third quarter of 2011, compared to $0.62 in the third quarter of 2010.
Net income attributable to CCIC stockholders for the third quarter of 2011 increased to $51 million, compared to net loss attributable to CCIC stockholders of $135 million for the same period in 2010. Net income attributable to CCIC stockholders after deduction of dividends on preferred stock and losses on purchases of preferred stock increased to $44 million in the third quarter of 2011, compared to net loss attributable to CCIC stockholders after deduction of dividends on preferred stock and losses on purchases of preferred stock of $140 million for the same period in 2010. Net income attributable to CCIC common stockholders after deduction of dividends on preferred stock and losses on purchases of preferred stock per common share was $0.15 for the third quarter of 2011, compared to net loss attributable to CCIC common stockholders per common share of $0.49 in the third quarter of 2010.
FINANCING AND INVESTING ACTIVITIES
"I am very pleased with our third quarter results, our ability to increase our Outlook for the balance of 2011 and our continued investment in activities such as share purchases and land acquisitions," stated Jay Brown, Chief Financial Officer of Crown Castle. "During the third quarter, we invested approximately $280 million in activities around our core business. We believe such investments strengthen our business and maximize long-term recurring cash flow per share, which we believe is the best measure of shareholder value creation. Since 2007, we have grown recurring cash flow per share by approximately 19% annually."
During the third quarter of 2011, Crown Castle purchased 3.0 million of its common shares and potential shares using $123.8 million in cash at an average price of $40.85 per share. These purchases were comprised of 2.7 million of common shares using $108.8 million in cash at an average price of $40.42 and $15.0 million of 6.25% preferred shares, reducing potential common shares by 0.3 million. Diluted common shares outstanding at September 30, 2011 were 282.8 million. Since January 2003, Crown Castle has spent $2.7 billion to purchase 100.3 million of its common shares and potential shares, at an average price of $26.84 per share.
During the third quarter of 2011, Crown Castle invested approximately $148 million in capital expenditures, comprised of $111 million of land purchases (including an $89 million purchase of our ground leases in a single transaction), $6 million of sustaining capital expenditures and $31 million of revenue generating capital expenditures, the latter consisting of $20 million on existing sites and $11 million on the construction of new sites.
Since June 30, 2011, Crown Castle has increased the borrowings under its revolving credit facility by $117 million to $305 million. As of September 30, 2011, Crown Castle had approximately $76 million in cash and cash equivalents (excluding restricted cash) and $145 million of availability under its revolving credit facility.
OUTLOOK
This Outlook section contains 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 is set forth below and in Crown Castle's filings with the Securities and Exchange Commission ("SEC").
The following Outlook table is based on current expectations and assumptions and assumes a US dollar to Australian dollar exchange rate of 1.0 US dollar to 1.0 Australian dollar for fourth quarter 2011, full year 2011 and 2012 Outlook.
As reflected in the following table, Crown Castle has increased the midpoint of its full year 2011 Outlook, previously issued on July 27, 2011, for site rental revenue by $7 million, site rental gross margin by $9 million, Adjusted EBITDA by $18 million and recurring cash flow by $17 million.
The Outlook for full year 2012 assumes site rental revenue growth of approximately $90 million, wholly comprised of anticipated new leasing activity in the form of new installations and amendments to existing installations. This growth in site rental revenue from new leasing is approximately equivalent to our full year expectations for 2011. The 2012 Outlook for site rental revenue does not assume any contribution to growth from the existing base of business as revenue from contractual rental increases is offset by higher expected churn, specifically related to Alltel licenses Verizon is expected to terminate as a result of its acquisition of Alltel. The impact of the churn is increased by the expectation that it will occur mostly in the first six months of 2012. Further, the Outlook does not assume any benefit from significant customer lease extensions in 2012.
The following table sets forth Crown Castle's current Outlook for the fourth quarter 2011, full year 2011 and full year 2012:
Fourth Quarter
(in millions, except per share amounts) 2011 Full Year 2011 Full Year 2012
----------------- ------------------- -------------------
Site rental revenues $467 to $472 $1,849 to $1,854 $1,930 to $1,945
Site rental cost of operations $117 to $122 $478 to $483 $470 to $485
Site rental gross margin $348 to $353 $1,368 to $1,373 $1,445 to $1,460
Adjusted EBITDA $330 to $335 $1,301 to $1,306 $1,365 to $1,380
Interest expense and amortization of deferred
financing costs(a)(b) $125 to $129 $506 to $510 $505 to $515
Sustaining capital expenditures $6 to $8 $20 to $22 $22 to $27
Recurring cash flow $196 to $201 $772 to $777 $830 to $845
Net income (loss) after deduction of dividends
on preferred stock $35 to $60 $136 to $170 $160 to $248
Net income (loss) per share -- diluted(c) $0.12 to $0.21 $0.48 to $0.60 $0.57 to $0.88
(a) Inclusive of $26 million, $103 million and $98 million, respectively, of non-cash expense.
(b) Approximately $18 million, $72 million and $65 million, respectively, of the total non-cash expense
relates to the amortization of interest rate swaps, all of which has been cash settled in prior periods.
(c) Represents net income (loss) per common share, based on 282.8 million diluted shares outstanding as of
September 30, 2011.
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for October 26, 2011, at 10:30 a.m. eastern time. The conference call may be accessed by dialing 480-629-9835 and asking for the Crown Castle call at least 30 minutes prior to the start time. The conference call may also be accessed live over the Internet at http://investor.crowncastle.com. Any supplemental materials for the call will be posted on the Crown Castle website at http://investor.crowncastle.com.
A telephonic replay of the conference call will be available from 12:30 p.m. eastern time on October 26, 2011, through 11:59 p.m. eastern time on November 2, 2011, and may be accessed by dialing 303-590-3030 using access code 4478158. An audio archive will also be available on the company's website at http://investor.crowncastle.com shortly after the call and will be accessible for approximately 90 days.
Crown Castle owns, operates, and leases towers and other infrastructure for wireless communications. Crown Castle offers significant wireless communications coverage to 92 of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and approximately 1,600 wireless communication sites in the US and Australia, respectively. For more information on Crown Castle, please visit www.crowncastle.com.
The Crown Castle International Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3063
Non-GAAP Financial Measures and Other Calculations
This press release includes presentations of Adjusted EBITDA and recurring cash flow, which are non-GAAP financial measures.
Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, interest expense and amortization of deferred financing costs, gains (losses) on purchases and redemptions of debt, net gain (loss) on interest rate swaps, impairment of available-for-sale securities, interest and other income (expense), benefit (provision) for income taxes, cumulative effect of change in accounting principle, income (loss) from discontinued operations and stock-based compensation expense. 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 ("GAAP")).
Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less sustaining capital expenditures. Each of the amounts included in the calculation of recurring cash flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures, which is not defined under GAAP. We define sustaining capital expenditures as capital expenditures (determined in accordance with GAAP) which do not increase the capacity or life of our revenue generating assets and include capitalized costs related to (i) maintenance activities on our towers, (ii) vehicles, (iii) information technology equipment, and (iv) office equipment. Recurring cash flow is not intended as an alternative measure of cash flow from operations or operating results (as determined in accordance with GAAP).
Adjusted EBITDA and recurring cash flow are presented as additional information because management believes these measures are useful indicators of the financial performance of our core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. Our measures of Adjusted EBITDA and recurring cash flow may not be comparable to similarly titled measures of other companies, including other companies in the tower sector. The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures. The components in these tables may not sum to the total due to rounding.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures:
Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the three
months and nine months ended September 30, 2011 and 2010 are computed as follows:
-----------------------------------------------------------------------------------------
For the Three Months For the Nine Months
Ended Ended
--------------------- ---------------------
September September September September
30, 30, 30, 30,
2011 2010 2011 2010
--------- ---------- --------- ----------
(in millions, except per share amounts)
Net income (loss) $ 51.4 $ (135.2) $ 122.5 $ (352.2)
Adjustments to increase (decrease) net
income (loss):
Asset write-down charges 3.1 4.4 13.7 8.6
Acquisition and integration costs 0.6 0.9 1.7 1.1
Depreciation, amortization and accretion 138.5 136.2 414 403.5
Interest expense and amortization of
deferred financing costs 127.1 123.2 380.3 364.3
Gains (losses) on purchases and
redemptions of debt -- 71.9 -- 138.4
Net gain (loss) on interest rate swaps -- 104.4 -- 292.3
Interest and other income (expense) 0.6 (0.8) 4.9 (1.0)
Benefit (provision) for income taxes 2.8 (7.6) 7.8 (22.6)
Stock-based compensation expense 8.3 8.7 26.8 28.0
--------- ---------- --------- ----------
Adjusted EBITDA $ 332.4 $ 306.1 $ 971.6 $ 860.5
========= ========== ========= ==========
Less: Interest expense and amortization of
deferred financing costs 127.1 123.2 380.3 364.3
Less: Sustaining capital expenditures 6.5 5.1 14.1 14.6
--------- ---------- --------- ----------
Recurring cash flow $ 198.8 $ 177.8 $ 577.2 $ 481.6
========= ========== ========= ==========
Weighted average common shares outstanding
-- diluted 283.9 286.1 286.9 286.9
--------- ---------- --------- ----------
Recurring cash flow per share $ 0.70 $ 0.62 $ 2.03 $ 1.68
========= ========== ========= ==========
Other Calculations:
Adjusted EBITDA and recurring cash flow for the quarter ending December 31, 2011 and the years
ending December 31, 2011 and December 31, 2012 are forecasted as follows:
-------------------------------------------------------------------------------------------------
Q4 2011 Full Year 2011 Full Year 2012
(in millions) Outlook Outlook Outlook
--------------- ----------------- -----------------
Net income (loss) $40 to $65 $157 to $191 $180 to $268
Adjustments to increase (decrease) net
income (loss):
Asset write-down charges $2 to $5 $15 to $18 $15 to $25
Acquisition and integration costs $0 to $1 $1 to $3 $1 to $3
Depreciation, amortization and accretion $136 to $141 $550 to $555 $545 to $565
Interest expense and amortization of
deferred financing costs(a)(b) $125 to $129 $506 to $510 $505 to $515
Gains (losses) on purchases and
redemptions of debt $0 to $0 $0 to $0 $0 to $0
Interest and other income (expense) $(1) to $1 $3 to $8 $(2) to $4
Benefit (provision) for income taxes $1 to $4 $8 to $13 $15 to $35
Stock-based compensation expense $7 to $9 $32 to $37 $33 to $38
--------------- ----------------- -----------------
Adjusted EBITDA $330 to $335 $1,301 to $1,306 $1,365 to $1,380
=============== ================= =================
Less: Interest expense and amortization of
deferred financing costs(a)(b) $125 to $129 $506 to $510 $505 to $515
Less: Sustaining capital expenditures $6 to $8 $20 to $22 $22 to $27
--------------- ----------------- -----------------
Recurring cash flow $196 to $201 $772 to $777 $830 to $845
=============== ================= =================
(a) Inclusive of approximately $26 million, $103 million and $98 million, respectively, of
non-cash expense.
(b) Approximately $18 million, $72 million and $65 million, respectively, of the total non-cash
expense relates to the amortization of interest rate swaps, all of which has been cash settled
in prior periods.
The components of interest expense and amortization of deferred
financing costs are as follows:
-------------------------------------------------------------------
For the Three Months
Ended
--------------------
September September
30, 30,
(in millions) 2011 2010
--------- ---------
Interest expense on debt obligations $ 101.4 $ 101.4
Amortization of deferred financing costs 3.8 3.8
Amortization of discounts on long-term debt 4.1 3.7
Amortization of interest rate swaps 18 14.4
Other (0.1) 0.3
--------- ---------
$ 127 $ 123
========= =========
The components of interest expense and amortization of deferred financing costs are forecasted
as follows:
----------------------------------------------------------------------------------------------
Q4 2011 Full Year 2011 Full Year 2012
(in millions) Outlook Outlook Outlook
------------- --------------- ---------------
Interest expense on debt obligations $100 to $103 $403 to $407 $407 to $417
Amortization of deferred financing costs $3 to $4 $14 to $16 $14 to $16
Amortization of discounts on long-term debt $3 to $4 $15 to $17 $17 to $19
Amortization of interest rate swaps $17 to $20 $69 to $74 $63 to $68
Other $0 to $0 $0 to $1 $(1) to $1
------------- --------------- ---------------
$125 to $129 $506 to $510 $505 to $515
============= =============== ===============
Debt balances and maturity dates as of
September 30, 2011:
-----------------------------------------
(in millions) Face Value Final Maturity
----------- -----------------
Revolver $ 305.0 September 2013
2007 Crown Castle Operating Company Term
Loan 620.8 March 2014
9% Senior Notes Due 2015 866.9 January 2015
7.5% Senior Notes Due 2013 0.1 December 2013
7.75% Senior Secured Notes Due 2017 1,000.40 May 2017
7.125% Senior Notes Due 2019 500.0 November 2019
Senior Secured Notes, Series 2009-1(a) 220.9 Various
Senior Secured Tower Revenue Notes,
Series 2010-1-2010-3(b) 1,900.00 Various
Senior Secured Tower Revenue Notes,
Series 2010-4-2010-6(c) 1,550.00 Various
Capital Leases and Other Obligations 49.5
----------- Various
Total Debt $ 7,013.5
===========
Less: Cash and Cash Equivalents(d) $ (75.5)
-----------
Net Debt $ 6,938.0
===========
(a) The 2009 Securitized Notes consist of $150.9 million of principal as
of September 30, 2011 that amortizes during the period beginning January
2010 and ending in 2019, and $70.0 million of principal that amortizes
during the period beginning in 2019 and ending in 2029.
(b) The Senior Secured Tower Revenue Notes Series 2010-1, 2010-2 and
2010-3 have principal amounts of $300.0 million, $350.0 million, and
$1,250.0 million with anticipated repayment dates of 2015, 2017, and
2020, respectively.
(c) The Senior Secured Tower Revenue Notes Series 2010-4, 2010-5 and
2010-6 have principal amounts of $250.0 million, $300.0 million and
$1,000.0 million with anticipated repayment dates of 2015, 2017 and
2020, respectively.
(d) Excludes restricted cash.
Sustaining capital expenditures for the three months and nine months ended
September 30, 2011 and 2010 is computed as follows:
-----------------------------------------------------------------------------
For the Three Months For the Nine Months
Ended Ended
-------------------- --------------------
September September September September
30, 30, 30, 30,
(in millions) 2011 2010 2011 2010
--------- --------- --------- ---------
Capital Expenditures $ 148.4 $ 56.5 $ 265.1 $ 148.3
Less: Land purchases 111 26.1 163.8 77.1
Less: Tower improvements and
other 19.6 22.2 55.1 47.5
Less: Construction of towers 11.4 3.1 32.1 9.1
--------- --------- --------- ---------
Sustaining capital expenditures $ 6.5 $ 5.1 $ 14.1 $ 14.6
========= ========= ========= =========
Site rental gross margin for the quarter ending December 31, 2011 and for the
years ending December 31, 2011 and December 31, 2012 is forecasted as
follows:
-----------------------------------------------------------------------------
Full Year
Q4 2011 2011 Full Year
(in millions) Outlook Outlook 2012
--------- --------- ---------
$467 to $1,849 to $1,930 to
Site rental revenue $472 $1,854 $1,945
Less: Site rental cost of $117 to $478 to $470 to
operations $122 $483 $485
--------- --------- ---------
$348 to $1,368 to $1,445 to
Site rental gross margin $353 $1,373 $1,460
========= ========= =========
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements and information that are based on our management's current expectations. Such statements include, but are not limited to, plans, projections, Outlook and estimates regarding (i) our investment activities, including share purchases and land acquisitions, and the impact of and return on our investments, (ii) currency exchange rates, (iii) leasing activity, including new installations, amendments to existing installations, lease escalations, churn, and lease extensions, (iv) site rental revenues, (v) site rental cost of operations, (vi) site rental gross margin, (vii) Adjusted EBITDA, (viii) interest expense and amortization of deferred financing costs, (ix) capital expenditures, including sustaining capital expenditures, (x) recurring cash flow, including on a per share basis, (xi) net income (loss), including on a per share basis, and (xii) the utility of certain financial measures in analyzing our results. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:
-- Our business depends on the demand for wireless communications and
towers, and we may be adversely affected by any slowdown in such demand.
-- A substantial portion of our revenues is derived from a small number of
customers, and the loss, consolidation or financial instability of any
of our limited number of customers may materially decrease revenues and
reduce demand for our towers and network services.
-- Our substantial level of indebtedness could adversely affect our ability
to react to changes in our business, and the terms of our debt
instruments limit our ability to take a number of actions that our
management might otherwise believe to be in our best interests. In
addition, if we fail to comply with our covenants, our debt could be
accelerated.
-- We have a substantial amount of indebtedness. In the event we do not
repay or refinance such indebtedness, we could face substantial
liquidity issues and might be required to issue equity securities or
securities convertible into equity securities, or sell some of our
assets to meet our debt payment obligations.
-- Sales or issuances of a substantial number of shares of our common stock
may adversely affect the market price of our common stock.
-- A wireless communications industry slowdown or reduction in carrier
network investment may materially and adversely affect our business
(including reducing demand for our towers and network services).
-- As a result of competition in our industry, including from some
competitors with significantly more resources or less debt than we have,
we may find it more difficult to achieve favorable rental rates on our
new or renewing customer contracts.
-- New technologies may significantly reduce demand for our towers and
negatively impact our revenues.
-- New wireless technologies may not deploy or be adopted by customers as
rapidly or in the manner projected.
-- If we fail to retain rights to the land under our towers, our business
may be adversely affected.
-- Our network services business has historically experienced significant
volatility in demand, which reduces the predictability of our results.
-- If we fail to comply with laws and regulations which regulate our
business and which may change at any time, we may be fined or even lose
our right to conduct some of our business.
-- If radio frequency emissions from wireless handsets or equipment on our
towers are demonstrated to cause negative health effects, potential
future claims could adversely affect our operations, costs and revenues.
-- Certain provisions of our certificate of incorporation, bylaws and
operative agreements and domestic and international competition laws may
make it more difficult for a third party to acquire control of us or for
us to acquire control of a third party, even if such a change in control
would be beneficial to our stockholders.
-- We may be adversely affected by our exposure to changes in foreign
currency exchange rates relating to our operations in Australia.
Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the SEC.
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousands)
September 30, December 31,
2011 2010
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 75,524 $ 112,531
Restricted cash 223,573 221,015
Receivables, net 64,762 59,912
Deferred income tax assets 53,345 59,098
Prepaid expenses, deferred
site rental receivables and
other current assets, net 105,076 92,589
------------- -------------
Total current assets 522,280 545,145
Property and equipment, net 4,864,400 4,893,651
Goodwill 2,031,949 2,029,296
Other intangible assets, net 2,211,643 2,313,929
Deferred site rental
receivables, long-term
prepaid rent, deferred
financing costs and other
assets, net 812,943 687,508
------------- -------------
$ 10,443,215 $ 10,469,529
============= =============
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and other
accrued liabilities $ 168,316 $ 210,075
Deferred revenues 174,906 202,123
Current maturities of debt
and other obligations 33,612 28,687
------------- -------------
Total current liabilities 376,834 440,885
Debt and other long-term
obligations 6,903,074 6,750,207
Deferred income tax
liabilities 67,613 66,686
Deferred ground lease payable
and other liabilities 477,232 450,176
------------- -------------
Total liabilities 7,824,753 7,707,954
Redeemable convertible
preferred stock 304,810 316,581
CCIC Stockholders' equity 2,313,062 2,445,373
Noncontrolling interest 590 (379)
------------- -------------
Total equity 2,313,652 2,444,994
------------- -------------
$ 10,443,215 $ 10,469,529
============= =============
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- --------------------------
2011 2010 2011 2010
---------- ----------- ------------ ------------
Net revenues:
Site rental $ 468,920 $ 437,079 $ 1,382,219 $ 1,253,582
Network services and other 44,963 44,811 131,039 128,762
---------- ----------- ------------ ------------
Total net revenues 513,883 481,890 1,513,258 1,382,344
---------- ----------- ------------ ------------
Operating expenses:
Costs of operations (exclusive of
depreciation, amortization and
accretion):
Site rental 121,759 116,233 361,317 345,453
Network services and other 25,083 26,767 78,213 82,990
General and administrative 42,922 41,420 128,925 121,449
Asset write-down charges 3,090 4,429 13,696 8,588
Acquisition and integration costs 617 867 1,661 1,139
Depreciation, amortization and
accretion 138,523 136,218 413,987 403,512
---------- ----------- ------------ ------------
Total operating expenses 331,994 325,934 997,799 963,131
---------- ----------- ------------ ------------
Operating income (loss) 181,889 155,956 515,459 419,213
Interest expense and amortization of
deferred financing costs (127,119) (123,196) (380,288) (364,322)
Gains (losses) on purchases and
redemptions of debt -- (71,933) -- (138,367)
Net gain (loss) on interest rate
swaps -- (104,421) -- (292,295)
Interest and other income (expense) (562) 847 (4,887) 985
---------- ----------- ------------ ------------
Income (loss) before income taxes 54,208 (142,747) 130,284 (374,786)
Benefit (provision) for income taxes (2,825) 7,597 (7,763) 22,622
---------- ----------- ------------ ------------
Net income (loss) 51,383 (135,150) 122,521 (352,164)
Less: Net income (loss) attributable
to the noncontrolling interest 105 (141) 355 (351)
---------- ----------- ------------ ------------
Net income (loss) attributable to
CCIC stockholders 51,278 (135,009) 122,166 (351,813)
Dividends on preferred stock and
losses on purchases of preferred
stock (7,541) (5,201) (17,944 (15,604)
---------- ----------- ------------ ------------
Net income (loss) attributable to
CCIC stockholders after deduction of
dividends on preferred stock and
losses on purchases of preferred
stock $ 43,737 $ (140,210) $ 104,222 $ (367,417)
========== =========== ============ ============
Net income (loss) attributable to
CCIC common stockholders, after
deduction of dividends on preferred
stock and losses on purchases of
preferred stock, per common share:
Basic $ 0.16 $ (0.49) $ 0.37 $ (1.28)
Diluted $ 0.15 $ (0.49) $ 0.36 $ (1.28)
Weighted average common shares
outstanding (in thousands):
Basic 282,031 286,119 284,770 286,883
Diluted 283,899 286,119 286,868 286,883
Adjusted EBITDA $ 332,398 $ 306,137 $ 971,614 $ 860,472
========== =========== ============ ============
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS (UNAUDITED)
(in thousands)
Nine Months Ended
September 30,
------------------------
2011 2010
---------- ------------
Cash flows from operating activities:
Net income (loss) $ 122,521 $ (352,164)
Adjustments to reconcile net income (loss) to
net cash provided by (used for) operating
activities:
Depreciation, amortization and accretion 413,987 403,512
Gains (losses) on purchases and redemptions
of long-term debt -- 138,367
Amortization of deferred financing costs and
other non-cash interest 77,221 59,734
Stock-based compensation expense 24,937 26,185
Asset write-down charges 13,696 8,588
Deferred income tax benefit (provision) 6,684 (34,279)
Income (expense) from forward-starting
interest rate swaps -- 292,295
Other adjustments, net 4,848 818
Changes in assets and liabilities, excluding
the effects of acquisitions:
Increase (decrease) in liabilities (37,869) (8,348)
Decrease (increase) in assets (170,751) (127,053)
---------- ------------
Net cash provided by (used for)
operating activities 455,274 407,655
---------- ------------
Cash flows from investing activities:
Proceeds from disposition of property and
equipment 1,052 2,035
Payments for acquisition of businesses, net
of cash acquired (17,997) (126,972)
Capital expenditures (265,115) (148,274)
Payments for investments and other -- (25,247)
Net (increase) decrease in restricted cash (15,427) --
---------- ------------
Net cash provided by (used for)
investing activities (297,487) (298,458)
---------- ------------
Cash flows from financing activities:
Proceeds from issuance of long-term debt -- 3,450,000
Proceeds from issuance of capital stock 1,523 16,310
Principal payments on long-term debt and
other long-term obligations (26,026) (18,282)
Purchases and redemptions of long-term debt -- (3,541,312)
Purchases of capital stock (301,369) (146,908)
Purchases of preferred stock (15,002) --
Borrowings under revolving credit agreement 273,000 --
Payments under revolving credit agreement (125,000) --
Payments for financing costs (82) (58,729)
Payments for forward-starting interest rate
swap settlements -- (266,870)
Net decrease (increase) in restricted cash 12,153 9,467
Dividends on preferred stock (14,713) (14,909)
---------- ------------
Net cash provided by (used for)
financing activities (195,516) (571,233)
---------- ------------
Effect of exchange rate changes on cash 722 (131)
Net increase (decrease) in cash and cash
equivalents (37,007) (462,167)
Cash and cash equivalents at beginning of
period 112,531 766,146
---------- ------------
Cash and cash equivalents at end of period $ 75,524 $ 303,979
========== ============
Supplemental disclosure of cash flow
information:
Interest paid 312,992 319,519
Income taxes paid 4,343 3,037
CROWN
CASTLE
INTERNA
TIONAL
CORP.
Summary
Fact
Sheet
dollars
in
million
s
Quarter Ended
---------------------------------------------------------------------------------------------------------------------------------
12/31/2010 3/31/2011 6/30/2011 9/30/2011
---------------------------------------------------------------------------------------------------------------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC
---------------------------------------------------------------------------------------------------------------------------------
Revenues
Site
Rental $ 421.9 $ 25.3 $ 447.2 $ 430.6 $ 25.6 $ 456.2 $ 429.5 $ 27.6 $ 457.1 $ 441.1 $ 27.8 $ 468.9
Service
s 46.4 2.7 49.1 37.7 5.2 42.8 40.0 3.2 43.2 40.9 4.1 45.0
---------------------------------------------------------------------------------------------------------------------------------
Total
Revenue
s 468.3 28.0 496.3 468.3 30.7 499.0 469.5 30.9 500.3 482.0 31.9 513.9
Operatin
g
Expense
s
Site
Rental 113.2 8.5 121.7 110.4 8.0 118.4 112.2 9.0 121.1 112.8 8.9 121.8
Service
s 29.7 1.6 31.3 24.0 3.3 27.2 23.6 2.3 25.9 22.7 2.4 25.1
---------------------------------------------------------------------------------------------------------------------------------
Total
Operati
ng
Expense
s 142.8 10.1 152.9 134.4 11.3 145.6 135.7 11.3 147 135.6 11.3 146.8
General
&
Adminis
trative 39.0 4.9 43.9 39.6 5.1 44.7 36.7 4.6 41.3 37.3 5.6 42.9
Add:
Stock-B
ased
Compens
ation 10.4 1.6 11.9 9.5 1.2 10.7 7.8 0.1 7.9 7.7 0.6 8.3
---------------------------------------------------------------------------------------------------------------------------------
Adjusted
EBITDA $ 296.8 $ 14.6 $ 311.4 $ 303.8 $ 15.5 $ 319.3 $ 304.8 $ 15.1 $ 319.9 $ 316.8 $ 15.6 $ 332.4
=================================================================================================================================
Quarter Ended
---------------------------------------------------------------------------------------------------------------------------------
12/31/2010 3/31/2011 6/30/2011 9/30/2011
---------------------------------------------------------------------------------------------------------------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC CCUSA CCAL CCIC
---------------------------------------------------------------------------------------------------------------------------------
Gross
Margins
:
Site
Rental 73% 66% 73% 74% 69% 74% 74% 67% 73% 74% 68% 74%
Service
s 36% 42% 36% 36% 37% 36% 41% 28% 40% 44% 42% 44%
Adjusted
EBITDA 63% 52% 63% 65% 50% 64% 65% 49% 64% 66% 49% 65%
Reconciliation of Non-GAAP Financial
Measure (Adjusted EBITDA) to GAAP
Financial Measure:
dollars in millions
Quarter Ended
-------------------------------------------
12/31/2010 3/31/2011 6/30/2011 9/30/2011
---------- --------- --------- ---------
Net income (loss) $ 40.9 $ 40.1 $ 31.0 $ 51.4
Adjustments to increase (decrease) net
income (loss):
Asset write-down charges 5.1 4.4 6.2 3.1
Acquisition and integration costs 1.0 0.6 0.5 0.6
Depreciation, amortization and accretion 137.3 137.3 138.2 138.5
Interest expense, amortization of
deferred financing costs 125.9 126.7 126.5 127.1
Net gain (loss) on interest rate swaps (5.9) -- -- --
Interest and other income (expense) (0.6) 0.4 3.9 0.6
Benefit (provision) for income taxes (4.2) (0.8) 5.8 2.8
Stock-based compensation 11.9 10.7 7.9 8.3
---------- --------- --------- ---------
Adjusted EBITDA $ 311.4 $ 319.3 $ 319.9 $ 332.4
========== ========= ========= =========
Note: Components may not sum to total due
to rounding.
CCI Fact Sheet Q3 2011 to
Q3 2010
dollars in millions
Quarter Ended
------------------------------
%
9/30/2010 9/30/2011 Change
---------- ---------- ------
CCUSA
Site Rental Revenues $ 414.3 $ 441.1 6%
Ending Towers 22,265 22,211 --%
CCAL
Site Rental Revenues $ 22.8 $ 27.8 22%
Ending Towers 1,595 1,596 -- %
Total CCIC
Site Rental Revenues $ 437.1 $ 468.9 7%
Ending Towers 23,860 23,807 -- %
Ending Cash and Cash
Equivalents $ 304.0* $ 75.5*
Total Face Value of Debt $ 6,708.6 $ 7,013.5
Net Debt $ 6,404.6 $ 6,938.0
Net Leverage Ratios: (1)
Net Debt / Adjusted EBITDA 5.2X 5.2X
Last Quarter Annualized
Adjusted EBITDA $ 1,224.5 $ 1,329.6
*Excludes Restricted Cash
(1) Based on Face Values
Note: Components may not
sum to total due to
rounding.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Crown Castle International Corp.
CONTACT: Jay Brown, CFO Fiona McKone, VP - Finance Crown Castle International Corp. 713-570-3050