UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): July 28, 2004
Crown Castle International Corp.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 001-16441 | 76-0470458 | ||
| (State or Other Jurisdiction | (Commission File Number) | (IRS Employer | ||
| of Incorporation) | Identification Number) |
510 Bering Drive
Suite 500
Houston, TX 77057
(Address of Principal Executive Office)
Registrant’s telephone number, including area code: (713) 570-3000
This document includes “forward-looking” statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Other than statements of historical fact, all
statements regarding industry prospects, the consummation of the transactions
described in this document and the Company’s expectations regarding the future
performance of its businesses and its financial position are forward-looking statements.
These forward-looking statements are subject to numerous risks and uncertainties.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
| Exhibit No. |
Description | |
| 99.1 | Press Release dated July 28, 2004 | |
| 99.2 | Press Release dated July 29, 2004 | |
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 28, 2004, the Company issued a press release disclosing its financial results for the second quarter of 2004. On July 29, 2004, the Company issued a press release disclosing the adjustment of 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 of 2004 as previously reported in the July 28 press release.
The July 28 press release, adjusted to reflect the changes disclosed in the July 29 press release, is furnished herewith as Exhibit 99.1 to this Form 8-K. The July 29 press release is furnished herewith as Exhibit 99.2.
The information in this Form 8-K and Exhibits 99.1 and 99.2 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CROWN CASTLE INTERNATIONAL CORP. | ||
| By: |
/S/ E. BLAKE HAWK | |
| Name: Title: |
E. Blake Hawk Executive Vice President and General Counsel | |
Date: July 29, 2004
2
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release dated July 28, 2004 | |
| 99.2 | Press Release dated July 29, 2004 | |
3
[Crown Castle Letterhead]
Exhibit 99.1
New Release
| Contacts: |
W. Benjamin Moreland, CFO | |
| Jay Brown, Treasurer | ||
| Crown Castle International Corp. | ||
| 713-570-3000 |
CROWN CASTLE INTERNATIONAL
REPORTS SECOND QUARTER 2004 RESULTS
July 28, 2004 – HOUSTON, TEXAS – Crown Castle International Corp. (NYSE:CCI) today reported results for the second quarter ended June 30, 2004. Results from Crown Castle’s UK subsidiary have been classified as discontinued operations, pending the closing of the previously announced sale.
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. Operating income improved to $3.5 million in the second quarter of 2004 from $(10.0) million in the second quarter of 2003, an increase of $13.5 million.
Net loss was $39.6 million for the second quarter of 2004 compared to a net loss of $80.8 million for the same period in 2003. Net loss after deduction of dividends on preferred stock was $48.9 million in the second quarter of 2004 compared to a loss of $100.9 million for the same period last year. Second quarter net loss per share was $(0.22) compared to a loss per share of $(0.47) in last year’s second quarter.
OPERATING RESULTS
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 gross margin, defined as site rental revenue less site rental cost of operations, increased 13.0% to $82.5 million, up $9.5 million in the second quarter of 2004 from the same period in 2003. On a consolidated basis, site rental gross margin, defined as site rental revenue less site rental cost of operations, increased 16.8% to $89.5 million, up $12.9 million in the second quarter of 2004 from the same period in 2003. These results approximate same tower sales and gross margin as over 99% of Crown Castle’s sites were in operation for the 12 months preceding June 30, 2004.
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“We are very pleased with the second quarter results and the growth we continue to see in our core business,” stated John P. Kelly, President and Chief Executive Officer of Crown Castle. “In the past year, we have achieved $51.6 million growth in annualized recurring gross margin on $54.4 million of additional annualized recurring revenue, while total general and administrative costs have remained unchanged. Based on our signed leases to date and our expected leasing during the second half of the year, we expect US leasing to increase approximately 25% this year compared to last year.”
Net cash from operating activities for the second quarter of 2004 was $35.2 million. Free cash flow, defined as net cash from operating activities less capital expenditures, was a source of cash of $22.6 million for the second quarter of 2004. For the second quarter of 2004, total capital expenditures were $12.7 million, comprised of $3.5 million of maintenance capital expenditures and $9.2 million of revenue generating capital expenditures. Crown Castle had $232.5 million of cash and cash equivalents as of June 30, 2004.
SALE OF UK SUBSIDIARY
On June 28, 2004, Crown Castle announced it had signed a definitive agreement to sell its UK subsidiary to National Grid Transco Plc for $2.035 billion in cash. Crown Castle will use approximately $1.3 billion of the proceeds from the transaction to fully repay Crown Castle Operating Company’s credit facility. Crown Castle expects to use the remaining net proceeds of approximately $740 million to repay debt or to invest in new business opportunities in the US.
As a result of the announced transaction, Crown Castle’s UK operations have been classified as discontinued operations. The closing date of the transaction, subject to certain approvals, is expected to be on or before September 30, 2004.
“We are continuing to proceed with closing the sale of the UK business,” stated W. Benjamin Moreland, Chief Financial Officer of Crown Castle. “We are finalizing a refinancing plan for the new balance sheet that we are targeting will deliver significant interest expense savings by January 1, 2005.”
OUTLOOK
The following statements and outlook table are based on current expectations and assumptions and assume a US dollar to Australian dollar exchange rate of 0.70 US dollars to 1.00 Australian dollar. This Outlook section contains forward-looking statements, and actual results may differ materially. Information regarding potential risks which could cause actual results to
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differ from the forward-looking statements herein are set forth below and in Crown Castle’s filings with the Securities and Exchange Commission.
Crown Castle has increased its 2004 Outlook for Site Rental Revenue from between $524 million and $528 million to between $525 million and $530 million and Adjusted EBITDA from between $270 million and $280 million to between $280 million and $287 million. Based primarily on increased leasing activity, Crown Castle has raised its 2004 outlook for revenue generating capital expenditures from between $23 million and $30 million to between $33 million and $40 million.
The following table sets forth Crown Castle’s current outlook for the third quarter and full year 2004 (dollars in millions):
| Third Quarter 2004 |
Full Year 2004 | |||||
| Site Rental Revenue |
$ | 134 to 136 | $ | 525 to 530 | ||
| Adjusted EBITDA |
$ | 70 to 73 | $ | 280 to 287 | ||
| Maintenance capital expenditures |
$ | 2 to 3 | $ | 7 to 10 | ||
| Revenue generating capital expenditures |
$ | 13 to 15 | $ | 33 to 40 | ||
The following table sets forth Crown Castle’s current outlook for 2005 (dollars in millions):
| 2005 Outlook | |||
| Site Rental Revenue |
$ | 565 to 575 | |
| Adjusted EBITDA |
$ | 310 to 320 | |
| Net cash provided by operating activities |
$ | 225 to 245 | |
| Maintenance capital expenditures |
$ | 7 to 10 | |
| Revenue generating capital expenditures |
$ | 23 to 30 | |
| Free cash flow |
$ | 195 to 215 | |
The Outlook above does not include results from our UK subsidiary. Crown Castle has not issued 2004 Outlook for net cash provided by operating activities and free cash flow because of the impact the timing of the expected closing of the sale of the UK subsidiary will have on 2004 interest expense. Crown Castle’s 2005 Outlook for net cash provided by operating activities includes expected savings from interest expense reductions that may be achieved through refinancings and further debt reductions associated with the application of sales proceeds and cash
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balances, and refinancings. Free cash flow is defined as net cash provided by operating activities less all capital expenditures (both maintenance and revenue generating capital expenditures).
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, July 29, 2004, at 9:30 a.m. eastern time to discuss second quarter results and Crown Castle’s Outlook. Please dial 303-205-0044 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 from 11:30 a.m. eastern time on Thursday, July 29, 2004, through 11:59 p.m. eastern time on Thursday, August 5, 2004, and may be accessed by dialing 303-590-3000 using passcode 11003229#. An audio archive will also be available on the company’s website at http://www.crowncastle.com shortly after the call and will be accessible for approximately 90 days.
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 Free Cash Flow and Adjusted EBITDA, which are non-GAAP financial measures. 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). Free Cash Flow and Adjusted EBITDA are not intended as alternative measures of operating results or cash flow from operations (as determined in accordance with generally accepted accounting principles). Further, our measure of Free Cash Flow and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Free Cash Flow is presented as additional information because management believes it to be a useful indicator of our ability to execute our business strategy without reliance on additional borrowing or the use of our cash and cash equivalents. Adjusted EBITDA is presented as additional information because management believes it to be 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 these non-GAAP financial measures to comparable GAAP financial measures. Our results under GAAP are set forth in the financial statements following this press release.
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Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Free Cash Flow is computed as follows:
| (In thousands of dollars) | For the Three Months Ended |
|||||||
| June 30, 2004 |
June 30, 2003 |
|||||||
| Net cash provided by operating activities |
$ | 35,232 | $ | 29,600 | ||||
| Less: Capital expenditures |
(12,681 | ) | (7,989 | ) | ||||
| Free Cash Flow |
$ | 22,551 | $ | 21,611 | ||||
Free Cash Flow for the year ending December 31, 2005 is forecasted as follows:
| (in millions of dollars) | Full Year 2005 Outlook | ||
| Net cash provided by operating activities |
$ | 225.0 to 245.0 | |
| Less: Capital expenditures |
$ | (30.0) to (40.0) | |
| Free Cash Flow |
$ | 195.0 to 215.0 | |
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 | ||||
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Adjusted EBITDA for the quarter ending September 30, 2004 is forecasted as follows:
| (in millions of dollars) | Q3 2004 Outlook |
|||
| Net income (loss) |
$ | 527.0 to 557.0 | ||
| Cumulative effect of change in accounting principle |
— | |||
| Income from discontinued operations |
(560.0) to (630.0 | ) | ||
| Minority interests |
0.5 to 2.5 | |||
| Provision for income taxes |
0.1 to 0.2 | |||
| Interest expense, amortization of deferred financing costs and dividends on preferred stock |
55.0 to 59.0 | |||
| Interest and other (income) expense |
1.0 to 2.5 | |||
| Depreciation, amortization and accretion |
60.0 to 62.0 | |||
| Non-cash general and administrative compensation charges |
1.4 to 1.5 | |||
| Asset write-down charges |
1.5 to 2.0 | |||
| Restructuring charges |
— | |||
| Adjusted EBITDA |
$ | 70.0 to 73.0 | ||
Adjusted EBITDA for the year ending December 31, 2004 and the year ending December 31, 2005 is forecasted as follows:
| (in millions of dollars) | Full Year 2004 Outlook |
Full Year 2005 Outlook | ||||
| Net income (loss) |
$ | 326.9 to 480.0 | $(21.3) to (51.3) | |||
| Cumulative effect of change in accounting principle |
— | — | ||||
| Income from discontinued operations |
(560.0) to (630.0 | ) | — | |||
| Minority interests |
(1.0) to 4.0 | (1.0) to 4.0 | ||||
| Provision for income taxes |
0.5 to 1.0 | 0.0 to 2.0 | ||||
| Interest expense, amortization of deferred financing costs and dividends on preferred stock |
183.3 to 207.0 | 71.5 to 81.5 | ||||
| Interest and other (income) expense |
19.8 to 26.2 | 19.8 to 23.8 | ||||
| Depreciation, amortization and accretion |
221.0 to 251.0 | 221.0 to 251.0 | ||||
| Non-cash general and administrative compensation charges |
12.0 to 14.0 | 12.0 to 14.0 | ||||
| Asset write-down charges |
3.8 to 7.6 | 1.9 to 3.0 | ||||
| Restructuring charges |
— | — | ||||
| Adjusted EBITDA |
$ | 280.0 to 287.0 | $310.0 to 320.0 | |||
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 and estimates regarding (i) demand and leasing rates for our sites and towers, (ii) our ability to close the sale of our UK business (“UK Transaction”) in the time frame anticipated or at all, (iii) the use of proceeds from the UK Transaction, (iv) the effect of the UK Transaction on our financial and operating position, (v) potential refinancing plans, (vi) potential interest expense reduction, (vii) currency exchange rates, (viii) revenues, (ix) net cash provided by operating activities, (x) adjusting EBITDA (xi) capital expenditures, and (xii) free cash flow, including free cash flow per share. Such forward-looking statements are
Page 7 of 10
subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:
| Ø | Our substantial level of indebtedness may adversely affect our ability to react to changes in our business and limit our ability to use debt to fund future capital needs. |
| Ø | Restrictive covenants on our debt instruments may limit our ability to take actions that may be in our best interests. If we fail to comply with our covenants, our debt may be accelerated. |
| Ø | Our business depends on the demand for wireless communications and towers, and we may be adversely affected by any slowdown in such demand. |
| Ø | The loss, consolidation, network sharing or financial instability of any of our limited number of customers may materially decrease revenues. |
| Ø | An economic or wireless telecommunications industry slowdown may materially and adversely affect our business and the business of our customers. |
| Ø | We operate in a competitive industry and some of our competitors have significantly more resources or less debt than we do. |
| Ø | Technology changes may significantly reduce the demand for site leases and negatively impact our revenues. |
| Ø | 2.5G/3G and other technologies, including digital terrestrial television, may not deploy or be adopted by customers as rapidly or in the manner projected. |
| Ø | We generally lease or sublease the land under our sites and towers and may not be able to maintain these leases. |
| Ø | Our international operations expose us to changes in foreign currency exchange rates. |
| Ø | We may need additional financing, which may not be available for strategic growth opportunities or contractual obligations. |
| Ø | Fluctuations in market interest rates may increase interest expense relating to our floating rate indebtedness. |
| Ø | Laws and regulations, which may change at any time and with which we may fail to comply, regulate our business. |
| Ø | Our network services business has historically experienced significant volatility in demand, which reduces the predictability of our results. |
| Ø | We are heavily dependent on our senior management. |
| Ø | We may suffer from future claims if radio frequency emissions from equipment on our sites and towers are demonstrated to cause negative health effects. |
| Ø | 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. |
| Ø | Sales or issuances of a substantial number of shares of our common stock may adversely affect the market price of our common stock. |
| Ø | Disputes with customers and suppliers may adversely affect results. |
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 Securities and Exchange Commission.
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Crown Castle International Corp.
Condensed Consolidated Statement of Operations
And Other Financial Data
(in thousands, except per share data)
| Three Months Ended June 30, |
Six Months Ended 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 | ||||||||
Page 9 of 10
Crown Castle International Corp.
Condensed Consolidated Balance Sheet
(in thousands)
| June 30, 2004 |
December 31, 2003 | |||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 232,503 | $ | 462,427 | ||
| Receivables, net of allowance for doubtful accounts |
35,652 | 38,219 | ||||
| Inventories |
9,308 | 9,615 | ||||
| Prepaid expenses and other current assets |
30,714 | 32,133 | ||||
| Assets of discontinued operations |
2,020,628 | 2,026,267 | ||||
| Total current assets |
2,328,805 | 2,568,661 | ||||
| Property and equipment, net of accumulated depreciation |
3,622,355 | 3,755,073 | ||||
| Goodwill |
267,071 | 267,071 | ||||
| Deferred financing costs and other assets, net of accumulated amortization |
151,975 | 146,786 | ||||
| $ | 6,370,206 | $ | 6,737,591 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ | 9,060 | $ | 9,785 | ||
| Accrued interest |
43,705 | 49,063 | ||||
| Accrued compensation and related benefits |
10,392 | 13,397 | ||||
| Deferred rental revenues and other accrued liabilities |
97,043 | 106,384 | ||||
| Liabilities of discontinued operations |
355,072 | 353,544 | ||||
| Long-term debt, current maturities |
1,275,385 | 267,142 | ||||
| Total current liabilities |
1,790,657 | 799,315 | ||||
| Long-term debt, less current maturities |
1,898,752 | 3,182,850 | ||||
| Other liabilities |
52,803 | 55,978 | ||||
| Total liabilities |
3,742,212 | 4,038,143 | ||||
| Minority interests |
207,700 | 208,333 | ||||
| Redeemable preferred stock |
507,371 | 506,702 | ||||
| Stockholders’ equity |
1,912,923 | 1,984,413 | ||||
| $ | 6,370,206 | $ | 6,737,591 | |||
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Crown Castle International Corp.
Condensed Consolidated Statement of Cash flows
| Three Months Ended June 30, |
||||||||
| 2004 |
2003 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ | (39,594 | ) | $ | (80,831 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
| Depreciation, amortization and accretion |
61,119 | 60,763 | ||||||
| Non-cash general and administrative compensation charges |
6,203 | 5,834 | ||||||
| Amortization of deferred financing costs and discounts on long-term debt |
2,813 | 17,378 | ||||||
| Asset write-down charges |
1,868 | 1,380 | ||||||
| Minority interests and loss on issuance of interest in joint venture |
1,463 | 8,844 | ||||||
| Equity in losses (earnings) and write-downs of unconsolidated affiliates |
1,405 | 1,380 | ||||||
| Income from discontinued operations |
(16,455 | ) | (2,099 | ) | ||||
| Changes in assets and liabilities: |
||||||||
| Increase in accrued interest |
12,475 | 14,079 | ||||||
| Increase in deferred rental revenues and other liabilities |
3,275 | 1,128 | ||||||
| Decrease in inventories, prepaid expenses and other assets |
1,091 | 2,980 | ||||||
| Increase (decrease) in accounts payable |
924 | (4,427 | ) | |||||
| (Increase) decrease in receivables |
(1,355 | ) | 3,191 | |||||
| Net cash provided by operating activities |
35,232 | 29,600 | ||||||
| Cash flows from investing activities: |
||||||||
| Proceeds from disposition of property and equipment |
1,065 | — | ||||||
| Capital expenditures |
(12,681 | ) | (7,989 | ) | ||||
| Investments in affiliates and other |
(305 | ) | (12,973 | ) | ||||
| Maturities of investments |
— | 14,808 | ||||||
| Acquisition of minority interest in joint venture |
— | (5,873 | ) | |||||
| Net cash used for investing activities |
(11,921 | ) | (12,027 | ) | ||||
| Cash flows from financing activities: |
||||||||
| Proceeds from issuance of capital stock |
22,711 | 896 | ||||||
| Purchases of capital stock |
(12,901 | ) | (38,688 | ) | ||||
| Principal payments on long-term debt |
(11,615 | ) | (4,750 | ) | ||||
| Net borrowings (payments) under revolving credit agreements |
— | (10,000 | ) | |||||
| Net cash used for financing activities |
(1,805 | ) | (52,542 | ) | ||||
| Effect of exchange rate changes on cash |
(1,185 | ) | 2,026 | |||||
| Discontinued operations |
40,697 | 15,695 | ||||||
| Net increase (decrease) in cash and cash equivalents |
61,018 | (17,248 | ) | |||||
| Cash and cash equivalents at beginning of period |
171,485 | 476,950 | ||||||
| Cash and cash equivalents at end of period |
$ | 232,503 | $ | 459,702 | ||||
| Supplemental disclosure of cash flow information: |
||||||||
| Interest paid |
$ | 40,065 | $ | 32,319 | ||||
| Income taxes paid |
184 | 126 | ||||||
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 | — | 43 | 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 | 318 | 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 |
||||||||||||
| Restricted |
Crown 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 | |||||
Exhibit 99.2
[Crown Castle Letterhead]
| Contacts: |
W. Benjamin Moreland, CFO | |
| Jay Brown, Treasurer | ||
| Crown Castle International Corp. | ||
| 713-570-3000 |
CROWN CASTLE INTERNATIONAL
ADJUSTS SECOND QUARTER 2004 SITE RENTAL
REVENUE AND COST OF OPERATIONS
July 29, 2004 – HOUSTON, TEXAS – 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
Page 2 of 4
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 | ||||
Page 3 of 4
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 | ||||
Page 4 of 4
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
AND OTHER FINANCIAL DATA
(in thousands, except per share data)
| Three Months Ended June 30, |
Six Months Ended 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 | — | 43 | 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 |
||||||||||||
| Restricted |
Crown 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 | 318 | 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 |
||||||||||||
| Restricted |
Crown 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 | |||||