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): October 28, 2003
Crown Castle International Corp.
(Exact Name of Registrant as Specified in its Charter)
| Delaware | 001-16441 | 76-0470458 | ||
| (State or Other Jurisdiction of | (Commission File | (IRS Employer | ||
| Incorporation) | Number) | 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 October 28, 2003 | |
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October 28, 2003, the Company issued a press release disclosing its financial results for the third quarter of 2003. The October 28 press release is furnished herewith as Exhibit 99.1 to this Form 8-K.
The information in this Form 8-K and Exhibit 99.1 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: E. Blake Hawk | ||
| Title: Executive Vice President | ||
| and General Counsel | ||
Date: October 28, 2003
2
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release dated October 28, 2003 | |
3
EXHIBIT 99.1
[CROWN CASTLE INTERNATIONAL NEWS RELEASE GRAPHIC]
| Contacts: | W. Benjamin Moreland, CFO | |||
| Jay Brown, VP Finance | ||||
| Crown Castle International Corp. | ||||
| 713-570-3000 | ||||
| Ken Dennard / ksdennard@drg-e.com | ||||
| Lisa Elliott / lelliott@drg-e.com | ||||
| DRG&E | ||||
| 713-529-6600 |
CROWN CASTLE INTERNATIONAL REPORTS
THIRD QUARTER RESULTS; ISSUES NOTICE OF
REDEMPTION FOR 12¾% PREFERRED STOCK; INCREASES
2004 FREE CASH FLOW GUIDANCE
October 28, 2003 – HOUSTON, TEXAS – Crown Castle International Corp. (NYSE:CCI) today reported results for the third quarter ended September 30, 2003.
Total revenue for the third quarter of 2003 was $235.6 million. Site rental and broadcast transmission revenues for the third quarter of 2003 increased 19% percent to $198.4 million from $166.3 million for the same period in the prior year. Operating income improved $17.9 million to $10.0 million in the third quarter of 2003 from a loss of $7.9 million in the third quarter of 2002.
Net loss was $99.7 million for the third quarter of 2003, inclusive of $37.6 million in losses from the retirement of debt and preferred securities, compared to a net loss of $65.6 million for the same period in 2002, inclusive of $30.0 million of gains from the retirement of debt. Net loss after deduction of dividends on preferred stock was $109.2 million in the third quarter of 2003, inclusive of $37.6 million in losses from the retirement of debt and preferred securities, compared to a loss of $35.7 million for the same period last year, inclusive of $79.8 million in gains from the retirement of debt and preferred securities. Third quarter net loss per share was $(0.50) compared to a loss per share of $(0.16) in last year’s third quarter of 2002.
Net cash from operating activities for the third quarter of 2003 was $44.1 million. Free cash flow, defined as net cash from operating activities less capital expenditures, for the third quarter of 2003 was a source of cash of $22.4 million, an improvement of $48.1 million from the same period last year. At September 30, 2003, cash and cash equivalents were $255.7 million.
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OPERATING RESULTS
US site rental revenue for the third quarter of 2003 increased $8.6 million, or 8.2%, to $113.4 million, up from $104.8 million for the same period in 2002, and UK site rental and broadcast transmission revenue for the third quarter of 2003 increased $23.1 million, or 41.7%, to $78.3 million, up from $55.2 million for the same period in 2002. These revenue results approximate same tower sales as a result of the fact that approximately 98% of Crown Castle’s sites on September 30, 2003 were in operation as of July 1, 2002. On a consolidated basis, site rental and broadcast transmission gross margin, defined as site rental and broadcast transmission revenue less site rental and broadcast transmission cost of operations, increased 27% to $121.3 million, up $25.6 million in the third quarter of 2003 from the same period in 2002. Year over year comparisons of site rental and broadcast transmission revenue and gross margin were positively impacted $10.5 million and $7.5 million, respectively, by the launch of Freeview in the UK during the fourth quarter of 2002. For the third quarter of 2003, US capital expenditures were $5.3 million and UK capital expenditures were $15.5 million. During the third quarter of 2003, Crown Castle developed 31 sites in the UK under our agreement with British Telecom.
“Our business units delivered strong revenue growth this quarter in our core site rental and broadcast transmission business and completed some key agreements,” stated John P. Kelly, President and Chief Executive Officer of Crown Castle. “While our outlook continues to suggest leasing activity will remain constant at current levels, we see indications that US leasing activity may improve into 2004. We have seen an increase in site applications for our US towers from our customers as they improve their networks. We continue to strive to meet our customers’ needs with increased speed and accuracy. Our continued efforts to grow revenue while reducing interest expense, working capital, and capital expenditures resulted in excellent free cash flow results. We remain on track with our initiatives and are on pace to outperform our original free cash flow outlook for 2003, which we provided last year.”
BALANCE SHEET IMPROVEMENTS
On October 10, 2003, Crown Castle announced the completion of an amended $1.6 billion credit facility for its restricted group operating company (“OpCo Facility”) and made certain changes to its capital structure. The OpCo Facility is comprised of a $192.5 million Term A loan, a $1.1 billion Term B loan and an unfunded $350 million revolving credit facility. Crown Castle also designated its UK subsidiary (“CCUK”) as a restricted subsidiary, repaid the CCUK senior credit facility and will redeem on November 10, 2003 CCUK’s 9% Guaranteed Bonds due 2007.
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During the third quarter, Crown Castle purchased 179,551 shares of its 12¾% Senior Exchangeable Preferred Stock for $198.3 million in cash. At September 30, 2003, the remaining 12¾% Senior Exchangeable Preferred Stock due 2010 had an aggregate redemption value of $46.8 million. Crown Castle has delivered notice to redeem the remaining 12¾% Senior Exchangeable Preferred Stock at the contractual call price of 106.375% on December 15, 2003, the first optional redemption date for such securities.
Also, during the third quarter of 2003, Crown Castle repaid $10.0 million of its Crown Atlantic credit facility. Pro forma for the OpCo Facility, repayment of the CCUK credit facility and the redemption of the CCUK 9% Guaranteed Bonds, at September 30, 2003, Crown Castle had approximately $1.0 billion of total liquidity, comprised of approximately $550 million of cash and cash equivalents and total availability under its OpCo Facility and Crown Atlantic credit facility of approximately $470 million.
“We remain committed to increasing free cash flow through growth in our core leasing business and reductions in interest expense,” stated W. Benjamin Moreland, Chief Financial Officer of Crown Castle. “The successful refinancing of our OpCo Facility is an important milestone in our efforts to improve our overall financial profile. We are very focused on improving our leverage and interest coverage ratios ahead of the contractual call dates of our senior notes, which start May 2004. By investing our excess liquidity to purchase our debt securities and through the potential refinancing of a portion of our senior notes next year, we expect to make further progress towards our goal of reducing our run-rate total interest expense to less than $200 million by the end of 2004 and converting the savings into free cash flow growth.”
On July 1, 2003, Crown Castle adopted the provisions of Statement of Financial Accounting Standards No. 150, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity (“SFAS 150”). As a result, Crown Castle’s 12¾% Senior Exchangeable Preferred Stock was reclassified as a liability and the dividends and losses resulting from the purchases of such securities are included in the net loss on the consolidated statement of operations beginning on July 1, 2003.
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OUTLOOK
The following statements and outlook table are based on current expectations and assumptions and assume a US dollar to UK pound exchange rate of 1.65 dollars to 1.00 pound and a US dollar to Australian dollar exchange rate of 0.60 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 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 adjusted certain elements of its previously provided financial guidance for full year 2004, which results in expected free cash flow increasing from between $105 million and $130 million to between $120 million and $140 million for the full year 2004. Crown Castle’s outlook for net cash provided by operating activities is based on interest expense on its existing debt balances and does not include savings from interest expense reductions that may be achieved through further debt reductions and refinancings, except for the interest savings from the redemption on December 15, 2003 of the 12¾% Senior Exchangeable Preferred Stock. Crown Castle’s 2003 and 2004 projected net cash provided by operating activities assumes the effect of converting paid-in-kind interest to cash pay for the 10 3/8% and 11¼% Senior Discount Notes.
The following table sets forth Crown Castle’s current outlook:
(dollars in millions):
| Fourth Quarter |
Full Year |
Full Year | ||||
| 2003 |
2003 |
2004 | ||||
| Site rental and broadcast transmission revenue |
200 to 205 | 773 to 778 | 810 to 835 | |||
| Net cash provided by operating activities |
40 to 50* | 184 to 194* | 195 to 225 | |||
| Capital expenditures |
24 to 28 | 119 to 123 | 70 to 90 | |||
| Free Cash Flow |
15 to 25* | 64 to 74* | 120 to 140 |
| * | Includes the payment of approximately $13.0 million of accrued interest previously scheduled for first quarter of 2004 related primarily to the redemption of the CCUK 9% Guaranteed Bonds as a part of refinancing the OpCo Facility. |
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CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Wednesday, October 29, 2003 at 9:30 a.m. eastern time to discuss third quarter results and Crown Castle’s Outlook. Please dial 303-262-2194 and ask for the Crown Castle call at least 10 minutes prior to the start time. A telephonic replay of the conference call will be available through November 5, 2003 and may be accessed by calling 303-590-3000 and using pass code 555073. An audio archive will also be available on Crown Castle’s website at www.crowncastle.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Karen Roan at DRG&E at 1-713-529-6600 or email kroan@drg-e.com.
Crown Castle engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers and rooftops as well as analog and digital audio and television broadcast transmission systems. Crown Castle offers near-universal broadcast coverage in the United Kingdom and significant wireless communications coverage to 68 of the top 100 United States markets, to more than 95 percent of the UK population and to more than 92 percent of the Australian population. Crown Castle owns, operates and manages over 15,500 wireless communication sites internationally. For more information on Crown Castle, visit: www.crowncastle.com.
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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, 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 liquid investments. 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.
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 |
|||||||
| Sept. 30, 2003 |
Sept. 30, 2002 |
|||||||
| Net cash provided by operating activities |
$ | 44,064 | $ | 12,383 | ||||
| Less: Capital expenditures |
(21,617 | ) | (38,003 | ) | ||||
| Free Cash Flow |
$ | 22,447 | $ | (25,620 | ) | |||
| (In millions of dollars) | Forecast Ranges for the Periods | |||||
| Q4 2003 |
Full Year 2003 |
Full Year 2004 | ||||
| Net cash provided by operating activities |
$40 to 50 | $184 to 194 | $195 to 225 | |||
| Less: Capital expenditures |
$(24) to (28) | $(119) to (123) | $(70) to (90) | |||
| Free Cash Flow |
$15 to 25 | $64 to 74 | $120 to 140 | |||
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| Adjusted EBITDA is computed as follows: |
Three Months Ended September 30, |
Nine Months Ended September 30, |
||||||||||||||
| (in thousands of dollars) | 2003 |
2002 |
2003 |
2002 |
||||||||||||
| Net loss |
$ | (99,678 | ) | (65,628 | ) | $ | (249,525 | ) | $ | (237,619 | ) | |||||
| Cumulative effect of change in accounting principle |
— | — | 2,035 | — | ||||||||||||
| Minority interests |
(151 | ) | 75 | 1,136 | (3,347 | ) | ||||||||||
| Provision for income taxes |
4,236 | 101 | 11,620 | 5,444 | ||||||||||||
| Interest expense, amortization of deferred financing costs and dividends on preferred stock |
70,788 | 78,127 | 216,002 | 230,834 | ||||||||||||
| Interest and other income (expense) |
34,845 | (20,579 | ) | 46,869 | (18,329 | ) | ||||||||||
| Depreciation, amortization and accretion |
80,389 | 77,280 | 241,259 | 225,167 | ||||||||||||
| Non-cash general and administrative compensation charges |
10,444 | 1,351 | 20,570 | 3,991 | ||||||||||||
| Asset write-down charges |
6,137 | 14,540 | 7,517 | 47,246 | ||||||||||||
| Restructuring charges (credits) |
(1,058 | ) | 657 | 1,291 | 6,609 | |||||||||||
| Adjusted EBITDA |
$ | 105,952 | $ | 85,924 | $ | 298,774 | $ | 259,996 | ||||||||
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) debt and preferred stock refinancings, purchases, redemptions and other reductions, (iii) interest expense, (iv) working capital, (v) actual performance compared to outlook or guidance provided, (vi) leverage and interest coverage ratios, (vii) currency exchange rates, (viii) revenues, (ix) net cash provided by operating activities, (x) capital expenditures, and (xi) free cash flow. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:
| × | Our substantial level of indebtedness could adversely affect our ability to react to changes in our business and limit our ability to use debt to fund future capital needs. |
| × | If we are unable to service our indebtedness, our indebtedness may be accelerated. |
| × | Our business depends on the demand for wireless communications, which has been and may continue to be lower and slower than anticipated. |
| × | The continuation of the current economic and telecommunications industry slowdown could materially and adversely affect our business and the business of our customers. |
| × | We may be unable to successfully integrate acquired operations or manage our existing operations as we grow. |
| × | The loss, consolidation or financial instability of any of our limited number of customers could materially decrease revenues. |
| × | Restrictive covenants on our debt instruments may limit our ability to take actions that may be in our best interests. |
| × | We operate in a competitive industry and some of our competitors have significantly more resources than we do or have less debt than we do. |
| × | Technology changes may significantly reduce the demand for towers and wireless communications sites. |
| × | 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. |
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| × | Carrier consolidation or reduced carrier expansion may significantly reduce the demand for towers and wireless communication sites. |
| × | Network sharing and other agreements among our customers may act as alternatives to leasing sites from us. |
| × | Demand for our network services business is very volatile which causes our network services operating results to vary significantly for any particular period. |
| × | We have historically experienced consolidated net losses, and we anticipate that we will continue to experience consolidated net losses in the foreseeable future. |
| × | We may need additional financing for strategic growth opportunities which may not be available. |
| × | We generally lease or sublease the land under our sites and towers and may not be able to maintain these leases at commercially viable rates. The loss of any of our ground leases could result in retirement obligations. |
| × | Laws and regulations, which could change at any time, govern our business and industry, and we could fail to comply with these laws and regulations. |
| × | We could suffer from future claims if radio frequency emissions from equipment on our sites and towers are demonstrated to cause negative health effects. |
| × | Our international operations expose us to changes in foreign currency exchange rates. |
| × | We are heavily dependent on our senior management. |
| × | Certain provisions of our certificate of incorporation, bylaws and operative agreements and domestic and international competition laws could 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. |
| × | Sales or issuances, including as dividends, of a substantial number of shares of our common stock could adversely affect the market price of our common stock. |
| × | Disputes with customers and suppliers may adversely affect results. |
| × | The carrying value of our sites and related goodwill may be subject to impairment in the future if we are unable to add sufficient additional tenants to the sites. |
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors that could affect our results is included in our filings with the Securities and Exchange Commission.
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| [CROWN CASTLE INTERNATIONAL GRAPHIC] | CROWN CASTLE INTERNATIONAL CORP. | |
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS AND OTHER FINANCIAL DATA (in thousands, except per share data) |
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2003 |
2002 |
2003 |
2002 |
|||||||||||||
| Net revenues: |
||||||||||||||||
| Site rental and broadcast transmission |
$ | 198,387 | $ | 166,343 | $ | 572,817 | $ | 498,559 | ||||||||
| Network services and other |
37,190 | 61,081 | 103,685 | 175,013 | ||||||||||||
| Total net revenues |
235,577 | 227,424 | 676,502 | 673,572 | ||||||||||||
| Costs of operations: |
||||||||||||||||
| Site rental and broadcast transmission |
77,046 | 70,591 | 224,086 | 198,603 | ||||||||||||
| Network services and other |
27,984 | 47,388 | 80,179 | 136,960 | ||||||||||||
| Total costs of operations |
105,030 | 117,979 | 304,265 | 335,563 | ||||||||||||
| General and administrative |
23,556 | 21,461 | 69,886 | 71,981 | ||||||||||||
| Corporate development |
1,039 | 2,060 | 3,577 | 6,032 | ||||||||||||
| Restructuring charges (credits) |
(1,058 | ) | 657 | 1,291 | 6,609 | |||||||||||
| Asset write-down charges |
6,137 | 14,540 | 7,517 | 47,246 | ||||||||||||
| Non-cash general and administrative compensation charges |
10,444 | 1,351 | 20,570 | 3,991 | ||||||||||||
| Depreciation, amortization and accretion |
80,389 | 77,280 | 241,259 | 225,167 | ||||||||||||
| Operating income (loss) |
10,040 | (7,904 | ) | 28,137 | (23,017 | ) | ||||||||||
| Interest and other income (expense) |
(34,845 | ) | 20,579 | (46,869 | ) | 18,329 | ||||||||||
| Interest expense, amortization of deferred financing costs and dividends on preferred stock |
(70,788 | ) | (78,127 | ) | (216,002 | ) | (230,834 | ) | ||||||||
| Loss before income taxes, minority interests and cumulative effect of change in accounting principle |
(95,593 | ) | (65,452 | ) | (234,734 | ) | (235,522 | ) | ||||||||
| Provision for income taxes |
(4,236 | ) | (101 | ) | (11,620 | ) | (5,444 | ) | ||||||||
| Minority interests |
151 | (75 | ) | (1,136 | ) | 3,347 | ||||||||||
| Loss before cumulative effect of change in accounting principle |
(99,678 | ) | (65,628 | ) | (247,490 | ) | (237,619 | ) | ||||||||
| Cumulative effect of change in accounting principle for asset retirement obligations, net of related tax benefit of $636 |
— | — | (2,035 | ) | — | |||||||||||
| Net loss |
(99,678 | ) | (65,628 | ) | (249,525 | ) | (237,619 | ) | ||||||||
| Dividends on preferred stock, net of gains (losses) on repurchases of preferred stock |
(9,496 | ) | 29,932 | (43,948 | ) | (11,034 | ) | |||||||||
| Net loss after deduction of dividends on preferred stock, net of gains (losses) on repurchases of preferred stock |
$ | (109,174 | ) | $ | (35,696 | ) | $ | (293,473 | ) | $ | (248,653 | ) | ||||
| Per common share—basic and diluted: |
||||||||||||||||
| Loss before cumulative effect of change in accounting principle |
$ | (0.50 | ) | $ | (0.16 | ) | $ | (1.35 | ) | $ | (1.14 | ) | ||||
| Cumulative effect of change in accounting principle |
— | — | (0.01 | ) | — | |||||||||||
| Net loss |
$ | (0.50 | ) | $ | (0.16 | ) | $ | (1.36 | ) | $ | (1.14 | ) | ||||
| Common shares outstanding—basic and diluted |
216,621 | 216,656 | 216,516 | 218,991 | ||||||||||||
| Adjusted EBITDA (before restructuring and asset write-down charges): |
||||||||||||||||
| Site rental and broadcast transmission |
$ | 113,494 | $ | 88,463 | $ | 325,362 | $ | 273,482 | ||||||||
| Network services and other (before corporate development expenses) |
(6,503 | ) | (479 | ) | (23,011 | ) | (7,454 | ) | ||||||||
| Adjusted EBITDA before corporate development expenses |
106,991 | 87,984 | 302,351 | 266,028 | ||||||||||||
| Corporate development |
(1,039 | ) | (2,060 | ) | (3,577 | ) | (6,032 | ) | ||||||||
| Total Adjusted EBITDA |
$ | 105,952 | $ | 85,924 | $ | 298,774 | $ | 259,996 | ||||||||
| [CROWN CASTLE INTERNATIONAL GRAPHIC] | CROWN CASTLE INTERNATIONAL CORP. | |
| CONDENSED CONSOLIDATED BALANCE SHEET (in thousands) |
| September 30, 2003 |
December 31, 2002 | |||||
| ASSETS |
||||||
| Current assets: |
||||||
| Cash and cash equivalents |
$ | 255,672 | $ | 516,172 | ||
| Receivables, net of allowance for doubtful accounts |
90,083 | 135,864 | ||||
| Short-term investments |
— | 115,697 | ||||
| Inventories |
25,310 | 45,616 | ||||
| Prepaid expenses and other current assets |
67,590 | 53,732 | ||||
| Total current assets |
438,655 | 867,081 | ||||
| Property and equipment, net of accumulated depreciation |
4,708,688 | 4,828,033 | ||||
| Goodwill |
1,142,357 | 1,067,041 | ||||
| Deferred financing costs and other assets, net of accumulated amortization |
141,007 | 130,446 | ||||
| $ | 6,430,707 | $ | 6,892,601 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||
| Current liabilities: |
||||||
| Accounts payable |
$ | 47,168 | $ | 63,852 | ||
| Accrued interest |
33,323 | 59,811 | ||||
| Accrued compensation and related benefits |
14,273 | 14,661 | ||||
| Deferred rental revenues and other accrued liabilities |
228,232 | 208,195 | ||||
| Long-term debt, current maturities |
37,750 | 14,250 | ||||
| Total current liabilities |
360,746 | 360,769 | ||||
| Long-term debt, less current maturities |
3,117,488 | 3,212,710 | ||||
| Redeemable preferred stock |
46,769 | — | ||||
| Other liabilities |
200,674 | 183,227 | ||||
| Total liabilities |
3,725,677 | 3,756,706 | ||||
| Minority interests |
202,486 | 171,383 | ||||
| Redeemable preferred stock |
506,367 | 756,014 | ||||
| Stockholders’ equity |
1,996,177 | 2,208,498 | ||||
| $ | 6,430,707 | $ | 6,892,601 | |||
| [CROWN CASTLE INTERNATIONAL GRAPHIC] | CROWN CASTLE INTERNATIONAL CORP. | |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) |
| Three Months Ended September 30, |
||||||||
| 2003 |
2002 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net loss |
$ | (99,678 | ) | $ | (65,628 | ) | ||
| Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
| Depreciation, amortization and accretion |
80,389 | 77,280 | ||||||
| Amortization of deferred financing costs, discounts on long-term debt and dividends on preferred stock |
20,578 | 25,662 | ||||||
| (Gains) losses on purchases and redemption of long-term debt |
18,858 | (29,998 | ) | |||||
| Losses on purchases of preferred stock |
18,718 | — | ||||||
| Non-cash general and administrative compensation charges |
10,444 | 1,351 | ||||||
| Asset write-down charges |
6,137 | 14,540 | ||||||
| Equity in losses (earnings) and write-downs of unconsolidated affiliates |
(3,026 | ) | 13,315 | |||||
| Minority interests |
(151 | ) | 75 | |||||
| Changes in assets and liabilities: |
||||||||
| Increase (decrease) in accounts payable |
5,336 | (2,209 | ) | |||||
| Decrease in inventories, prepaid expenses and other assets |
5,289 | 18,355 | ||||||
| Increase (decrease) in deferred rental revenues and other liabilities |
3,333 | (36,671 | ) | |||||
| Decrease in accrued interest |
(16,778 | ) | (19,217 | ) | ||||
| (Increase) decrease in receivables |
(5,385 | ) | 15,528 | |||||
| Net cash provided by operating activities |
44,064 | 12,383 | ||||||
| Cash flows from investing activities: |
||||||||
| Maturities of investments |
63,456 | 77,463 | ||||||
| Proceeds from disposition of property and equipment |
4,220 | 22,476 | ||||||
| Capital expenditures |
(21,617 | ) | (38,003 | ) | ||||
| Investments in affiliates and other |
(22 | ) | 7,182 | |||||
| Purchases of investments |
— | (41,807 | ) | |||||
| Acquisition of assets |
— | (1,197 | ) | |||||
| Net cash provided by investing activities |
46,037 | 26,114 | ||||||
| Cash flows from financing activities: |
||||||||
| Proceeds from issuance of long-term debt |
230,000 | — | ||||||
| Proceeds from issuance of capital stock |
2,581 | 42 | ||||||
| Purchases and redemption of long-term debt |
(251,867 | ) | (45,300 | ) | ||||
| Purchases of capital stock |
(229,222 | ) | (41,457 | ) | ||||
| Net borrowings (payments) under revolving credit agreements |
(34,665 | ) | (50,000 | ) | ||||
| Incurrence of financing costs |
(7,441 | ) | — | |||||
| Principal payments on long-term debt |
(4,750 | ) | — | |||||
| Net cash used for financing activities |
(295,364 | ) | (136,715 | ) | ||||
| Effect of exchange rate changes on cash |
1,233 | 2,162 | ||||||
| Net decrease in cash and cash equivalents |
(204,030 | ) | (96,056 | ) | ||||
| Cash and cash equivalents at beginning of period |
459,702 | 701,375 | ||||||
| Cash and cash equivalents at end of period |
$ | 255,672 | $ | 605,319 | ||||
| Supplemental disclosure of cash flow information: |
||||||||
| Interest paid |
$ | 62,128 | $ | 71,357 | ||||
| Income taxes paid |
85 | 108 | ||||||
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
| Quarter Ended 09/30/02 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Revenues |
||||||||||||
| Site Rental |
104,763 | 55,230 | 6,350 | 166,343 | ||||||||
| Services |
41,228 | 19,226 | 627 | 61,081 | ||||||||
| Total Revenues |
145,991 | 74,456 | 6,977 | 227,424 | ||||||||
| Operating Expenses |
||||||||||||
| Site Rental |
39,707 | 28,743 | 2,141 | 70,591 | ||||||||
| Services |
31,960 | 15,009 | 419 | 47,388 | ||||||||
| Total Operating Expenses |
71,667 | 43,752 | 2,560 | 117,979 | ||||||||
| General & Administrative |
||||||||||||
| Site Rental |
5,037 | 924 | 1,328 | 7,289 | ||||||||
| Services |
13,754 | 418 | — | 14,172 | ||||||||
| Total General & Administrative |
18,791 | 1,342 | 1,328 | 21,461 | ||||||||
| Operating Cash Flow |
||||||||||||
| Site Rental |
60,019 | 25,563 | 2,881 | 88,463 | ||||||||
| Services |
(4,486 | ) | 3,799 | 208 | (479 | ) | ||||||
| Total Pre-Overhead |
||||||||||||
| Cash Flow |
55,533 | 29,362 | 3,089 | 87,984 | ||||||||
| Corporate Overhead |
2,060 | — | — | 2,060 | ||||||||
| Adjusted EBITDA |
53,473 | 29,362 | 3,089 | 85,924 | ||||||||
| Quarter Ended 09/30/02 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Gross Margins: |
||||||||||||
| Site Rental |
62 | % | 48 | % | 66 | % | 58 | % | ||||
| Services |
22 | % | 22 | % | 33 | % | 22 | % | ||||
| Operating Cash Flow Margins |
||||||||||||
| Site Rental |
57 | % | 46 | % | 45 | % | 53 | % | ||||
| Services |
-11 | % | 20 | % | 33 | % | -1 | % | ||||
| Adjusted EBITDA Margin |
37 | % | 39 | % | 44 | % | 38 | % | ||||
| Quarter Ended 12/31/02 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Revenues |
||||||||||||
| Site Rental |
108,023 | 65,248 | 6,009 | 179,280 | ||||||||
| Services |
27,651 | 20,372 | 658 | 48,681 | ||||||||
| Total Revenues |
135,674 | 85,620 | 6,667 | 227,961 | ||||||||
| Operating Expenses |
||||||||||||
| Site Rental |
37,080 | 31,888 | 2,453 | 71,421 | ||||||||
| Services |
21,914 | 16,850 | 451 | 39,215 | ||||||||
| Total Operating Expenses |
58,994 | 48,738 | 2,904 | 110,636 | ||||||||
| General & Administrative |
||||||||||||
| Site Rental |
4,797 | 392 | 1,661 | 6,850 | ||||||||
| Services |
15,220 | 171 | — | 15,391 | ||||||||
| Total General & Administrative |
20,017 | 563 | 1,661 | 22,241 | ||||||||
| Operating Cash Flow |
||||||||||||
| Site Rental |
66,146 | 32,968 | 1,895 | 101,009 | ||||||||
| Services |
(9,483 | ) | 3,351 | 207 | (5,925 | ) | ||||||
| Total Pre-Overhead |
||||||||||||
| Cash Flow |
56,663 | 36,319 | 2,102 | 95,084 | ||||||||
| Corporate Overhead |
1,451 | — | — | 1,451 | ||||||||
| Adjusted EBITDA |
55,212 | 36,319 | 2,102 | 93,633 | ||||||||
12
| Quarter Ended 12/31/02 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Gross Margins: |
||||||||||||
| Site Rental |
66 | % | 51 | % | 59 | % | 60 | % | ||||
| Services |
21 | % | 17 | % | 31 | % | 19 | % | ||||
| Operating Cash Flow Margins |
||||||||||||
| Site Rental |
61 | % | 51 | % | 32 | % | 56 | % | ||||
| Services |
-34 | % | 16 | % | 31 | % | -12 | % | ||||
| Adjusted EBITDA Margin |
41 | % | 42 | % | 32 | % | 41 | % | ||||
| Quarter Ended 3/31/03 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Revenues |
||||||||||||
| Site Rental |
107,849 | 71,125 | 5,986 | 184,960 | ||||||||
| Services |
16,135 | 14,845 | 784 | 31,764 | ||||||||
| Total Revenues |
123,984 | 85,970 | 6,770 | 216,724 | ||||||||
| Operating Expenses |
||||||||||||
| Site Rental |
38,325 | 32,752 | 2,283 | 73,360 | ||||||||
| Services |
11,036 | 13,331 | 575 | 24,942 | ||||||||
| Total Operating Expenses |
49,361 | 46,083 | 2,858 | 98,302 | ||||||||
| General & Administrative |
||||||||||||
| Site Rental |
4,579 | 1,172 | 1,700 | 7,451 | ||||||||
| Services |
14,239 | 502 | — | 14,741 | ||||||||
| Total General & Administrative |
18,818 | 1,674 | 1,700 | 22,192 | ||||||||
| Operating Cash Flow |
||||||||||||
| Site Rental |
64,945 | 37,201 | 2,003 | 104,149 | ||||||||
| Services |
(9,140 | ) | 1,012 | 209 | (7,919 | ) | ||||||
| Total Pre-Overhead Cash Flow |
55,805 | 38,213 | 2,212 | 96,230 | ||||||||
| Corporate Overhead |
1,620 | — | — | 1,620 | ||||||||
| Adjusted EBITDA |
54,185 | 38,213 | 2,212 | 94,610 | ||||||||
| Quarter Ended 3/31/03 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Gross Margins: |
||||||||||||
| Site Rental |
64 | % | 54 | % | 62 | % | 60 | % | ||||
| Services |
32 | % | 10 | % | 27 | % | 21 | % | ||||
| Operating Cash Flow Margins |
||||||||||||
| Site Rental |
60 | % | 52 | % | 33 | % | 56 | % | ||||
| Services |
-57 | % | 7 | % | 27 | % | -25 | % | ||||
| Adjusted EBITDA Margin |
44 | % | 44 | % | 33 | % | 44 | % | ||||
| Quarter Ended 6/30/03 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Revenues |
||||||||||||
| Site Rental |
110,504 | 72,824 | 6,142 | 189,470 | ||||||||
| Services |
18,771 | 15,102 | 858 | 34,731 | ||||||||
| Total Revenues |
129,275 | 87,926 | 7,000 | 224,201 | ||||||||
| Operating Expenses |
||||||||||||
| Site Rental |
37,502 | 33,695 | 2,483 | 73,680 | ||||||||
| Services |
12,234 | 14,434 | 585 | 27,253 | ||||||||
| Total Operating Expenses |
49,736 | 48,129 | 3,068 | 100,933 | ||||||||
| General & Administrative |
||||||||||||
| Site Rental |
5,080 | 1,343 | 1,648 | 8,071 | ||||||||
| Services |
15,492 | 575 | — | 16,067 | ||||||||
| Total General & Administrative |
20,572 | 1,918 | 1,648 | 24,138 | ||||||||
| Operating Cash Flow |
||||||||||||
| Site Rental |
67,922 | 37,786 | 2,011 | 107,719 | ||||||||
| Services |
(8,955 | ) | 93 | 273 | (8,589 | ) | ||||||
| Total Pre-Overhead Cash Flow |
58,967 | 37,879 | 2,284 | 99,130 | ||||||||
| Corporate Overhead |
918 | — | — | 918 | ||||||||
| Adjusted EBITDA |
58,049 | 37,879 | 2,284 | 98,212 | ||||||||
13
| Quarter Ended 6/30/03 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Gross Margins: |
||||||||||||
| Site Rental |
66 | % | 54 | % | 60 | % | 61 | % | ||||
| Services |
35 | % | 4 | % | 32 | % | 22 | % | ||||
| Operating Cash Flow Margins |
||||||||||||
| Site Rental |
61 | % | 52 | % | 33 | % | 57 | % | ||||
| Services |
-48 | % | 1 | % | 32 | % | -25 | % | ||||
| Adjusted EBITDA Margin |
45 | % | 43 | % | 33 | % | 44 | % | ||||
| Quarter Ended 9/30/03 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Revenues |
||||||||||||
| Site Rental |
113,387 | 78,260 | 6,740 | 198,387 | ||||||||
| Services |
16,361 | 19,794 | 1,035 | 37,190 | ||||||||
| Total Revenues |
129,748 | 98,054 | 7,775 | 235,577 | ||||||||
| Operating Expenses |
||||||||||||
| Site Rental |
37,298 | 36,984 | 2,764 | 77,046 | ||||||||
| Services |
9,668 | 17,806 | 510 | 27,984 | ||||||||
| Total Operating Expenses |
46,966 | 54,790 | 3,274 | 105,030 | ||||||||
| General & Administrative |
||||||||||||
| Site Rental |
4,319 | 1,491 | 2,037 | 7,847 | ||||||||
| Services |
15,066 | 643 | — | 15,709 | ||||||||
| Total General & Administrative |
19,385 | 2,134 | 2,037 | 23,556 | ||||||||
| Operating Cash Flow |
||||||||||||
| Site Rental |
71,770 | 39,785 | 1,939 | 113,494 | ||||||||
| Services |
(8,373 | ) | 1,345 | 525 | (6,503 | ) | ||||||
| Total Pre-Overhead Cash Flow |
63,397 | 41,130 | 2,464 | 106,991 | ||||||||
| Corporate Overhead |
1,039 | — | — | 1,039 | ||||||||
| Adjusted EBITDA |
62,358 | 41,130 | 2,464 | 105,952 | ||||||||
| Quarter Ended 9/30/03 |
||||||||||||
| US |
UK |
AUS |
CCIC |
|||||||||
| Gross Margins: |
||||||||||||
| Site Rental |
67 | % | 53 | % | 59 | % | 61 | % | ||||
| Services |
41 | % | 10 | % | 51 | % | 25 | % | ||||
| Operating Cash Flow Margins |
||||||||||||
| Site Rental |
63 | % | 51 | % | 29 | % | 57 | % | ||||
| Services |
-51 | % | 7 | % | 51 | % | -17 | % | ||||
| Adjusted EBITDA Margin |
48 | % | 42 | % | 32 | % | 45 | % | ||||
14
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
| Quarter Ended 09/30/02 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Revenues |
|||||||||||||||
| Site Rental |
87,300 | 55,230 | 23,813 | — | 166,343 | ||||||||||
| Services |
34,658 | 19,226 | 7,197 | — | 61,081 | ||||||||||
| Total Revenues |
121,958 | 74,456 | 31,010 | — | 227,424 | ||||||||||
| Operating Expenses |
|||||||||||||||
| Site Rental |
32,380 | 28,743 | 9,468 | — | 70,591 | ||||||||||
| Services |
29,082 | 15,009 | 3,297 | — | 47,388 | ||||||||||
| Total Operating Expenses |
61,462 | 43,752 | 12,765 | — | 117,979 | ||||||||||
| General & Administrative |
|||||||||||||||
| Site Rental |
5,943 | 924 | 422 | 7,289 | |||||||||||
| Services |
12,356 | 418 | 906 | 492 | 14,172 | ||||||||||
| Total General & Administrative |
18,299 | 1,342 | 1,328 | 492 | 21,461 | ||||||||||
| Operating Cash Flow |
|||||||||||||||
| Site Rental |
48,977 | 25,563 | 13,923 | 88,463 | |||||||||||
| Services |
(6,780 | ) | 3,799 | 2,994 | (492 | ) | (479 | ) | |||||||
| Total Pre-Overhead Cash Flow |
42,197 | 29,362 | 16,917 | (492 | ) | 87,984 | |||||||||
| Corporate Overhead |
2,060 | — | — | — | 2,060 | ||||||||||
| Adjusted EBITDA |
40,137 | 29,362 | 16,917 | (492 | ) | 85,924 | |||||||||
| Quarter Ended 09/30/02 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Gross Margins: |
|||||||||||||||
| Site Rental |
63 | % | 48 | % | 60 | % | — | 58 | % | ||||||
| Services |
16 | % | 22 | % | 54 | % | — | 22 | % | ||||||
| Operating Cash Flow Margins |
|||||||||||||||
| Site Rental |
56 | % | 46 | % | 58 | % | — | 53 | % | ||||||
| Services |
-20 | % | 20 | % | 42 | % | — | -1 | % | ||||||
| Adjusted EBITDA Margin |
33 | % | 39 | % | 55 | % | N/A | 38 | % | ||||||
| Quarter Ended 12/31/02 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Revenues |
|||||||||||||||
| Site Rental |
89,684 | 65,248 | 24,348 | — | 179,280 | ||||||||||
| Services |
22,663 | 20,372 | 5,646 | — | 48,681 | ||||||||||
| Total Revenues |
112,347 | 85,620 | 29,994 | — | 227,961 | ||||||||||
| Operating Expenses |
|||||||||||||||
| Site Rental |
29,898 | 31,888 | 9,635 | — | 71,421 | ||||||||||
| Services |
19,991 | 16,850 | 2,374 | — | 39,215 | ||||||||||
| Total Operating Expenses |
49,889 | 48,738 | 12,009 | — | 110,636 | ||||||||||
| General & Administrative |
|||||||||||||||
| Site Rental |
6,006 | 392 | 452 | — | 6,850 | ||||||||||
| Services |
12,758 | 171 | 1,015 | 1,447 | 15,391 | ||||||||||
| Total General & Administrative |
18,764 | 563 | 1,467 | 1,447 | 22,241 | ||||||||||
| Operating Cash Flow |
|||||||||||||||
| Site Rental |
53,780 | 32,968 | 14,261 | — | 101,009 | ||||||||||
| Services |
(10,086 | ) | 3,351 | 2,257 | (1,447 | ) | (5,925 | ) | |||||||
| Total Pre-Overhead Cash Flow |
43,694 | 36,319 | 16,518 | (1,447 | ) | 95,084 | |||||||||
| Corporate Overhead |
1,451 | — | — | — | 1,451 | ||||||||||
| Adjusted EBITDA |
42,243 | 36,319 | 16,518 | (1,447 | ) | 93,633 | |||||||||
15
| Quarter Ended 12/31/02 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Gross Margins: |
|||||||||||||||
| Site Rental |
67 | % | 51 | % | 60 | % | — | 60 | % | ||||||
| Services |
12 | % | 17 | % | 58 | % | — | 19 | % | ||||||
| Operating Cash Flow Margins |
|||||||||||||||
| Site Rental |
60 | % | 51 | % | 59 | % | — | 56 | % | ||||||
| Services |
-45 | % | 16 | % | 40 | % | — | -12 | % | ||||||
| Adjusted EBITDA Margin |
38 | % | 42 | % | 55 | % | N/A | 41 | % | ||||||
| Quarter Ended 3/31/03 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Revenues |
|||||||||||||||
| Site Rental |
88,885 | 71,125 | 24,950 | — | 184,960 | ||||||||||
| Services |
14,236 | 14,845 | 2,683 | — | 31,764 | ||||||||||
| Total Revenues |
103,121 | 85,970 | 27,633 | — | 216,724 | ||||||||||
| Operating Expenses |
|||||||||||||||
| Site Rental |
30,887 | 32,752 | 9,721 | — | 73,360 | ||||||||||
| Services |
9,894 | 13,331 | 1,717 | — | 24,942 | ||||||||||
| Total Operating Expenses |
40,781 | 46,083 | 11,438 | — | 98,302 | ||||||||||
| General & Administrative |
|||||||||||||||
| Site Rental |
5,759 | 1,172 | 520 | — | 7,451 | ||||||||||
| Services |
11,861 | 502 | 1,101 | 1,277 | 14,741 | ||||||||||
| Total General & Administrative |
17,620 | 1,674 | 1,621 | 1,277 | 22,192 | ||||||||||
| Operating Cash Flow |
|||||||||||||||
| Site Rental |
52,239 | 37,201 | 14,709 | — | 104,149 | ||||||||||
| Services |
(7,519 | ) | 1,012 | (135 | ) | (1,277 | ) | (7,919 | ) | ||||||
| Total Pre-Overhead Cash Flow |
44,720 | 38,213 | 14,574 | (1,277 | ) | 96,230 | |||||||||
| Corporate Overhead |
1,620 | — | — | — | 1,620 | ||||||||||
| Adjusted EBITDA |
43,100 | 38,213 | 14,574 | (1,277 | ) | 94,610 | |||||||||
| Quarter Ended 3/31/03 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Gross Margins: |
|||||||||||||||
| Site Rental |
65 | % | 54 | % | 61 | % | — | 60 | % | ||||||
| Services |
31 | % | 10 | % | 36 | % | — | 21 | % | ||||||
| Operating Cash Flow Margins |
|||||||||||||||
| Site Rental |
59 | % | 52 | % | 59 | % | — | 56 | % | ||||||
| Services |
-53 | % | 7 | % | -5 | % | — | -25 | % | ||||||
| Adjusted EBITDA Margin |
42 | % | 44 | % | 53 | % | N/A | 44 | % | ||||||
| Quarter Ended 6/30/03 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Revenues |
|||||||||||||||
| Site Rental |
91,344 | 72,824 | 25,302 | — | 189,470 | ||||||||||
| Services |
15,556 | 15,102 | 4,073 | — | 34,731 | ||||||||||
| Total Revenues |
106,900 | 87,926 | 29,375 | — | 224,201 | ||||||||||
| Operating Expenses |
|||||||||||||||
| Site Rental |
30,877 | 33,695 | 9,108 | — | 73,680 | ||||||||||
| Services |
10,473 | 14,434 | 2,346 | — | 27,253 | ||||||||||
| Total Operating Expenses |
40,781 | 48,129 | 11,454 | — | 100,364 | ||||||||||
| General & Administrative |
|||||||||||||||
| Site Rental |
6,209 | 1,343 | 519 | — | 8,071 | ||||||||||
| Services |
13,405 | 575 | 984 | 1,103 | 16,067 | ||||||||||
| Total General & Administrative |
17,620 | 1,918 | 1,503 | 1,103 | 22,144 | ||||||||||
| Operating Cash Flow |
|||||||||||||||
| Site Rental |
54,258 | 37,786 | 15,675 | — | 107,719 | ||||||||||
| Services |
(8,322 | ) | 93 | 743 | (1,103 | ) | (8,589 | ) | |||||||
| Total Pre-Overhead Cash Flow |
45,936 | 37,879 | 16,418 | (1,103 | ) | 99,130 | |||||||||
| Corporate Overhead |
918 | — | — | — | 918 | ||||||||||
| Adjusted EBITDA |
45,018 | 37,879 | 16,418 | (1,103 | ) | 98,212 | |||||||||
16
| Quarter Ended 6/30/03 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Gross Margins: |
|||||||||||||||
| Site Rental |
66 | % | 54 | % | 64 | % | — | 61 | % | ||||||
| Services |
33 | % | 4 | % | 42 | % | — | 22 | % | ||||||
| Operating Cash Flow Margins |
|||||||||||||||
| Site Rental |
59 | % | 52 | % | 62 | % | — | 57 | % | ||||||
| Services |
-53 | % | 1 | % | 18 | % | — | -25 | % | ||||||
| Adjusted EBITDA Margin |
42 | % | 43 | % | 56 | % | N/A | 44 | % | ||||||
| Quarter Ended 9/30/03 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Revenues |
|||||||||||||||
| Site Rental |
94,620 | 78,260 | 25,507 | — | 198,387 | ||||||||||
| Services |
14,034 | 19,794 | 3,362 | — | 37,190 | ||||||||||
| Total Revenues |
108,654 | 98,054 | 28,869 | — | 235,577 | ||||||||||
| Operating Expenses |
|||||||||||||||
| Site Rental |
31,162 | 36,984 | 8,900 | — | 77,046 | ||||||||||
| Services |
9,349 | 17,806 | 829 | — | 27,984 | ||||||||||
| Total Operating Expenses |
40,511 | 54,790 | 9,729 | — | 105,030 | ||||||||||
| General & Administrative |
|||||||||||||||
| Site Rental |
5,899 | 1,491 | 457 | — | 7,847 | ||||||||||
| Services |
12,664 | 643 | 988 | 1,414 | 15,709 | ||||||||||
| Total General & Administrative |
18,563 | 2,134 | 1,445 | 1,414 | 23,556 | ||||||||||
| Operating Cash Flow |
|||||||||||||||
| Site Rental |
57,559 | 39,785 | 16,150 | — | 113,494 | ||||||||||
| Services |
(7,979 | ) | 1,345 | 1,545 | (1,414 | ) | (6,503 | ) | |||||||
| Total Pre-Overhead Cash Flow |
49,580 | 41,130 | 17,695 | (1,414 | ) | 106,991 | |||||||||
| Corporate Overhead |
1,039 | — | — | — | 1,039 | ||||||||||
| Adjusted EBITDA |
48,541 | 41,130 | 17,695 | (1,414 | ) | 105,952 | |||||||||
| Quarter Ended 9/30/03 |
|||||||||||||||
| Restricted |
UK |
Crown Atlantic |
Other |
CCIC |
|||||||||||
| Gross Margins: |
|||||||||||||||
| Site Rental |
67 | % | 53 | % | 65 | % | — | 61 | % | ||||||
| Services |
33 | % | 10 | % | 75 | % | — | 25 | % | ||||||
| Operating Cash Flow Margins |
|||||||||||||||
| Site Rental |
61 | % | 51 | % | 63 | % | — | 57 | % | ||||||
| Services |
-57 | % | 7 | % | 46 | % | — | -17 | % | ||||||
| Adjusted EBITDA Margin |
45 | % | 42 | % | 61 | % | N/A | 45 | % | ||||||
17
CCI FACT SHEET Q3 2003
$ in thousands
| Q3 ’02 |
Q3 ’03 |
% Change |
|||||||
| CCUSA and Crown Atlantic |
|||||||||
| Site Rental Revenue |
$ | 104,763 | $ | 113,387 | 8 | % | |||
| Ending Sites |
10,794 | 10,718 | -1 | % | |||||
| CCUK |
|||||||||
| Site Rental & Broadcast Transmission Revenue |
$ | 55,230 | $ | 78,260 | 42 | % | |||
| Ending Sites |
3,360 | 3,472 | 3 | % | |||||
| CCAUS |
|||||||||
| Site Rental Revenue |
$ | 6,350 | $ | 6,740 | 6 | % | |||
| Ending Sites |
1,403 | 1,387 | -1 | % | |||||
| TOTAL CCIC |
|||||||||
| Site Rental & Broadcast Transmission Revenue |
$ | 166,343 | $ | 198,387 | 19 | % | |||
| Ending Sites |
15,557 | 15,577 | 0 | % | |||||
| Ending Cash and Investments |
$ | 713,623 | $ | 255,672 | |||||
| Debt |
|||||||||
| Bank Debt |
$ | 1,119,129 | $ | 980,290 | |||||
| Bonds |
$ | 2,248,380 | $ | 2,174,948 | |||||
| 12 3/4% Preferred Stock |
$ | 313,097 | $ | 46,769 | |||||
| 6 1/4% & 8 1/4% Convertible Preferred Stock |
$ | 524,455 | $ | 506,367 | |||||
| Total Debt |
$ | 4,205,061 | $ | 3,708,374 | |||||
| Leverage Ratios |
|||||||||
| Net Bank Debt / EBITDA* |
1.2X | 1.7X | |||||||
| Net Bank Debt + Bonds + Preferred / EBITDA* |
8.6X | 7.0X | |||||||
| Total Net Debt / EBITDA* |
10.2X | 8.1X | |||||||
| *Last Quarter Annualized Adjusted EBITDA |
$ | 343,696 | $ | 423,808 | |||||
18