Crown Castle International Reports Record Second Quarter Results
HOUSTON, Aug. 8 /PRNewswire/ -- Crown Castle International Corp. (NYSE: CCI) today reported record results for the three months ended June 30, 2001.
Revenues for the second quarter of 2001 increased to $229.4 million from $148.4 million for the second quarter of 2000. Tower cash flow for the second quarter increased 35 percent to $70.7 million, up from $52.2 million in last year's second quarter. EBITDA increased 24 percent to $72.1 million for the three months ended June 30, 2001 from $58.2 million for the same period in 2000.
During the quarter, the Company built 389 towers and acquired 732 towers. Net of acquired tenants and anchor tenants on newly-built towers, the Company added 1,631 new tenants during the second quarter, representing an annualized co-location rate of .48 tenants per tower on the 13,467 sites owned and managed at the beginning of the quarter. On a broadband equivalent (BBE) basis, the Company added 1,630 new tenants during the second quarter, representing an annualized BBE co-location rate of .48 tenants per tower. Annual same tower wireless revenue growth was 22 percent for the 11,453 towers owned and operated by the Company on June 30, 2000.
"We are extremely pleased with the strength of our leasing results for the second quarter," stated Ted B. Miller, Jr., Chairman and CEO of Crown Castle International. "The fact that we added new tenants to our tower sites at an annualized co-location rate of .48 tenants per tower during the quarter is clear evidence of continued strong demand for antenna sites from wireless voice carriers. Leasing results in the UK were particularly strong, indicating that wireless carriers in mature 2G markets continue to need additional antennas to enhance coverage and capacity.
"We are also pleased with the leasing results and margin expansion of our core tower business in the US as we continue to refine our operating strategy," continued Mr. Miller. "Our recently announced restructuring and increased focus on achieving operational efficiencies should lead to improving cash flow margins throughout the rest of 2001. During 2002, we expect to achieve improved cash flow margins and total EBITDA growth of between 20 percent and 30 percent over 2001, demonstrating the tremendous operating leverage inherent in the infrastructure industry."
OUTLOOK
The following statements are based on current expectations and assume a US dollar to UK pound exchange rate of 1.40 dollars to 1.00 pound and a US dollar to Australian dollar exchange rate of 0.52 US dollars to 1.00 Australian dollar. The following Outlook sections contain forward-looking statements, and actual results may differ materially.
Outlook for Q3 2001
The Company expects third quarter 2001 site rental and broadcast transmission revenue to be between $142 million and $146 million, assuming that new tenants are added to existing towers at an annualized rate of between .40 tenants per tower and .50 tenants per tower during the quarter. The Company expects third quarter network services revenue to be between $65 million and $75 million. The Company expects third quarter EBITDA of between $80 million and $90 million.
The Company expects to build approximately 350 to 450 new towers during the third quarter, comprised of between 150 and 200 in the US and between 200 and 250 in the UK. The Company expects total capital expenditures to be between $175 million and $225 million during the third quarter. The Company expects total interest expense, net of interest income, to be between $75 million and $85 million for the third quarter.
REVENUE AND EBITDA OUTLOOK FOR YEAR 2001
The Company projects total revenues of between $850 million and $900 million for calendar year 2001, assuming that new tenants are added to existing towers at an annualized rate of between .40 tenants per tower and .50 tenants per tower during the year. Network services revenue is significantly dependent upon the provisioning of 3G sites in the U.K. and the subsequent availability of 3G equipment from manufacturers for network deployment. The Company expects EBITDA to be between $310 million and $330 million during year 2001.
Crown Castle has scheduled a conference call for Thursday, August 9, 2001 at 10:00 a.m. Eastern Time to discuss second quarter financial and operational results and the Company's Outlook. To participate in the call, dial 719-457-2661 at least ten minutes before the conference call begins and ask for the Crown Castle conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until August 16, 2001. To access the replay, dial 719-457-0820 using a pass code of 429532.
Investors, analysts and the general public will also have the opportunity to listen to the conference call free over the Internet by visiting the Company's website at www.crowncastle.com . To listen to the live call on the web, please visit the website at least fifteen minutes early to register, download and install any necessary audio software. For those who cannot listen to the live Webcast, an archived version will be available shortly after the call on the Company's website. For more information, please contact Karen Roan at Easterly Investor Relations at (713) 529-6600 or email karen@easterly.com.
Crown Castle International Corp. 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. The Company 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 International owns, operates and manages over 14,000 wireless communication towers internationally. For more information on Crown Castle International, visit: www.crowncastle.com .
This press release contains forward-looking statements and information that are based on management's beliefs as well as assumptions made by and information currently available to management. Such forward-looking statements include, but are not limited to, expectations, projections and estimates regarding (i) future cash flow margins, (ii) EBITDA growth rates, (iii) currency exchange rates, (iv) site rental and broadcast transmission revenue, (v) new tenant co-location rates, (vi) network services revenue, (vii) EBITDA, (viii) towers to be constructed, (ix) capital expenditures, (x) interest expense, and (xi) total revenues and total EBITDA.
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, but not limited to the success or failure of our efforts to implement our business strategy and the following:
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We may be unable to manage our significant growth.
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Our substantial level of indebtedness could adversely affect our ability to react to changes in our business and limit our ability to use debt to fund future capital needs.
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If we are unable to service our indebtedness, our indebtedness may be accelerated.
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Restrictive covenants on our debt instruments may limit our ability to take actions that may be in our best interests.
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We may be unable to raise the significant capital required to fund our operations and make acquisitions.
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We may not be able to construct or acquire new towers at the pace and in the locations that we desire.
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Our business depends on the demand for wireless communications.
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Demand for our network services business is very volatile which causes our network services operating results to vary significantly for any particular period.
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We operate in an increasingly competitive industry and many of our competitors have significantly more resources than we do.
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Extensive regulations, which could change at any time, govern our business and industry, and we could fail to comply with these regulations.
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We could suffer from future claims if radio frequency emissions from equipment on our towers is demonstrated to cause negative health effects.
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Our international operations expose us to changes in foreign currency exchange rates.
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We are heavily dependent on our senior management.
Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential factors which could affect the Company's financial results is included in the Risk Factors sections of the Company's filings with the Securities and Exchange Commission.
Contacts: W. Benjamin Moreland, CFO
Carmen Thompson, VP Finance
Crown Castle International
713-570-3000
Ken Dennard / kdennard@easterly.com
Lisa Elliott / lisae@easterly.com
Easterly Investor Relations
713-529-6600
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Tables to Follow -
Crown Castle International Corp.
Condensed Consolidated Statement of Operations
And Other Financial Data
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2001 2000 2001 2000
Net revenues:
Site rental and broadcast
transmission $139,800 $109,503 $273,842 $203,244
Network services and other 89,616 38,856 168,527 69,359
Total net revenues 229,416 148,359 442,369 272,603
Costs of operations:
Site rental and broadcast
transmission 59,555 48,563 117,294 88,850
Network services and other 63,551 20,007 119,007 35,908
Total costs of
operations 123,106 68,570 236,301 124,758
General and administrative 30,465 19,495 56,360 34,348
Corporate development 3,758 2,122 7,211 4,193
Asset write-down charges 12,272 --- 12,272 ---
Non-cash general and
administrative compensation
charges 1,380 350 2,775 811
Depreciation and amortization 74,756 56,647 148,847 101,769
Operating income (loss) (16,321) 1,175 (21,397) 6,724
Interest and other income
(expense) 4,544 6,665 7,636 12,369
Interest expense and
amortization of deferred
financing costs (73,175) (66,728) (139,830) (108,489)
Loss before income taxes,
minority interests and
extraordinary item (84,952) (58,888) (153,591) (89,396)
Provision for income taxes --- (25) (60) (36)
Minority interests 219 (317) 863 (1,858)
Loss before extraordinary
item (84,733) (59,230) (152,788) (91,290)
Extraordinary item - loss
on early extinguishment
of debt --- --- --- (1,495)
Net loss (84,733) (59,230) (152,788) (92,785)
Dividends on preferred stock (20,265) (11,725) (39,770) (23,218)
Net loss after deduction of
dividends on preferred
stock $(104,998) $(70,955) $(192,558) $(116,003)
Per common share
-
basic and diluted:
Loss before
extraordinary item $(0.49) $(0.43) $(0.91) $(0.71)
Extraordinary item --- --- --- (0.01)
Net loss $(0.49) $(0.43) $(0.91) $(0.72)
Common shares outstanding
- basic and diluted 214,059 165,625 212,627 162,095
EBITDA (before asset
write-down charges):
Site rental and broadcast
transmission $70,654 $52,245 $138,042 $100,773
Network services and
other (before corporate
development expenses
and provision for UK
bad debt reserve) 8,634 8,049 15,109 12,724
EBITDA before corporate
development expenses
and provision for UK
bad debt reserve 79,288 60,294 153,151 113,497
Corporate development (3,758) (2,122) (7,211) (4,193)
Provision for UK bad debt
reserve (3,443) --- (3,443) ---
Total EBITDA $72,087 $58,172 $142,497 $109,304
CROWN CASTLE INTERNATIONAL CORP.
Towers & Tenants Fact Sheet
Quarter Ended 9/30/00
US UK AUS Total
Sites:
Owned & Managed Sites 9,372 2,252 716 12,340
Rooftop Sites 98 51 --- 149
Total Sites 9,470 2,303 716 12,489
Site Activity:
Beginning Sites 8,490 2,247 716 11,453
Built 274 56 --- 330
Acquired 714 --- --- 714
Lost (8) --- --- (8)
Managed Sites Added --- --- --- ---
Ending Sites 9,470 2,303 716 12,489
Quarter Ended 9/30/00
US UK AUS Total
Tenant Activity:
Beginning Tenants 16,337 4,598 1,061 21,996
Anchors on Builds 89 56 --- 145
New 918 194 170 1,282
Acquired 1,078 --- --- 1,078
Ending Tenants 18,422 4,848 1,231 24,501
Quarter Ended 9/30/00
US UK AUS Total
Tenants per Site 1.9 2.1 1.7 2.0
New Tenants per Site 0.11 0.11 0.24 0.12
Annualized 0.46 0.43 0.95 0.48
Pure Co-Lo's per Site 0.11 0.09 0.24 0.11
Annualized 0.43 0.35 0.95 0.45
Quarter Ended 12/31/00
US UK AUS Total
Sites:
Owned & Managed Sites 9,757 2,279 716 12,752
Rooftop Sites 115 51 --- 166
Total Sites 9,872 2,330 716 12,918
Site Activity:
Beginning Sites 9,470 2,303 716 12,489
Built 216 27 --- 243
Acquired 177 --- --- 177
Lost --- --- --- ---
Managed Sites Added 9 --- --- 9
Ending Sites 9,872 2,330 716 12,918
Quarter Ended 12/31/00
US UK AUS Total
Tenant Activity:
Beginning Tenants 18,422 4,848 1,231 24,501
Anchors on Builds 114 27 --- 141
New 1,123 319 181 1,623
Acquired 218 --- --- 218
Ending Tenants 19,877 5,194 1,412 26,483
Quarter Ended 12/31/00
US UK AUS Total
Tenants per Site 2.0 2.2 2.0 2.1
New Tenants per Site 0.13 0.15 0.25 0.14
Annualized 0.51 0.59 1.01 0.55
Pure Co-Lo's per Site 0.12 0.14 0.25 0.13
Annualized 0.47 0.55 1.01 0.52
Quarter Ended 12/31/00
US UK AUS Total
Avg Monthly Lease Rate per New Tenant
Local Currency 1,445 370 1,170
US Dollars 1,445 537 644
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 1,123 319 181 1,623
Broadband Equivalent New Tenants 1,082 264 116 1,462
BBE Co-Lo's per Site 0.11 0.11 0.16 0.12
Annualized 0.46 0.46 0.65 0.47
Quarter Ended 3/31/01
US UK AUS Total
Sites:
Owned & Managed Sites 9,961 2,624 716 13,301
Rooftop Sites 115 51 --- 166
Total Sites 10,076 2,675 716 13,467
Site Activity:
Beginning Sites 9,872 2,330 716 12,918
Built 204 345 --- 549
Acquired --- --- --- ---
Lost --- --- --- ---
Managed Sites Added --- --- --- ---
Ending Sites 10,076 2,675 716 13,467
Quarter Ended 3/31/01
US UK AUS Total
Tenant Activity:
Beginning Tenants 19,877 5,194 1,412 26,483
Anchors on Builds 67 345 --- 412
New 1,049 281 139 1,469
Acquired --- --- --- ---
Ending Tenants 20,993 5,820 1,551 28,364
Quarter Ended 3/31/01
US UK AUS Total
Tenants per Site 2.1 2.2 2.2 2.1
New Tenants per Site 0.11 0.23 0.19 0.14
Annualized 0.44 0.94 0.78 0.56
Pure Co-Lo's per Site 0.11 0.12 0.19 0.11
Annualized 0.43 0.48 0.78 0.45
Quarter Ended 3/31/01
US UK AUS Total
Avg Monthly Lease Rate per New Tenant
Local Currency 1,476 342 1,143
US Dollars 1,476 496 629
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 1,049 281 139 1,469
Broadband Equivalent New Tenants 1,032 214 87 1,334
BBE Co-Lo's per Site 0.10 0.09 0.12 0.10
Annualized 0.42 0.37 0.49 0.41
Quarter Ended 6/30/01
US UK AUS Total
Sites:
Owned & Managed Sites 10,248 2,806 1,374 14,428
Rooftop Sites 115 51 --- 166
Total Sites 10,363 2,857 1,374 14,594
Site Activity:
Beginning Sites 10,076 2,675 716 13,467
Built 191 182 16 389
Acquired 90 --- 642 732
Lost --- --- --- ---
Managed Sites Added 6 --- --- 6
Ending Sites 10,363 2,857 1,374 14,594
Quarter Ended 6/30/01
US UK AUS Total
Tenant Activity:
Beginning Tenants 20,993 5,820 1,551 28,364
Anchors on Builds 75 182 16 273
New 1,045 515 71 1,631
Acquired 130 459 1,054 1,643
Ending Tenants 22,243 6,976 2,692 31,911
Quarter Ended 6/30/01
US UK AUS Total
Tenants per Site 2.1 2.4 2.0 2.2
New Tenants per Site 0.11 0.24 0.12 0.14
Annualized 0.44 0.98 0.48 0.55
Pure Co-Lo's per Site 0.10 0.19 0.10 0.12
Annualized 0.41 0.77 0.40 0.48
Quarter Ended 6/30/01
US UK AUS Total
Avg Monthly Lease Rate per New Tenant
Local Currency 1,498 490 1,106
US Dollars 1,498 686 608
Assumed Broadband Rate, USD 1,500 650 1,000
New Tenants 1,045 515 71 1,631
Broadband Equivalent New Tenants 1,044 544 43 1,630
BBE Co-Lo's per Site 0.10 0.20 0.06 0.12
Annualized 0.41 0.81 0.24 0.48
CROWN CASTLE INTERNATIONAL CORP.
EBITDA Summary Fact Sheet
(in $ thousands)
Quarter Ended 3/31/01
US UK AUS CCIC
Revenues
Site Rental 81,684 49,368 2,990 134,042
Services 69,135 9,776 --- 78,911
Total Revenues 150,819 59,144 2,990 212,953
Operating Expenses
Site Rental 33,600 23,044 1,095 57,739
Services 46,471 8,985 --- 55,456
Total Operating Expenses 80,071 32,029 1,095 113,195
General & Administrative
Site Rental 5,866 1,558 1,491 8,915
Services 16,835 145 --- 16,980
Total General & Administrative 22,701 1,703 1,491 25,895
Operating Cash Flow
Site Rental 42,218 24,766 404 67,388
Services 5,829 646 --- 6,475
Total Pre-Overhead Cash Flow 48,047 25,412 404 73,863
Corporate Overhead 3,405 48 --- 3,453
EBITDA 44,642 25,364 404 70,410
Quarter Ended 3/31/01
US UK AUS CCIC
Gross Margins:
Site Rental 59% 53% 63% 57%
Services 33% 8% 0% 30%
Operating Cash Flow Margins
Site Rental 52% 50% 14% 50%
Services 8% 7% 0% 8%
EBITDA Margin 30% 43% 14% 33%
Quarter Ended 6/30/01
US UK AUS CCIC
Revenues
Site Rental 84,635 50,694 4,471 139,800
Services 82,851 6,240 525 89,616
Total Revenues 167,486 56,934 4,996 229,416
Operating Expenses
Site Rental 32,240 25,494 1,821 59,555
Services 56,932 6,169 450 63,551
Total Operating Expenses 89,172 31,663 2,271 123,106
General & Administrative
Site Rental 6,195 1,661 1,735 9,591
Services 17,219 3,655 --- 20,874
Total General & Administrative 23,414 5,316 1,735 30,465
Operating Cash Flow
Site Rental 46,200 23,539 915 70,654
Services 8,700 (3,584) 75 5,191
Total Pre-Overhead Cash Flow 54,900 19,955 990 75,845
Corporate Overhead 3,758 --- --- 3,758
EBITDA 51,142 19,955 990 72,087
Quarter Ended 6/30/01
US UK AUS CCIC
Gross Margins:
Site Rental 62% 50% 59% 57%
Services 31% 1% 14% 29%
Operating Cash Flow Margins
Site Rental 55% 46% 20% 51%
Services 11% -57% 14% 6%
EBITDA Margin 31% 35% 20% 31%
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SOURCE Crown Castle International Corp.
CONTACT: W. Benjamin Moreland, CFO, or Carmen Thompson, VP Finance, both of Crown Castle International Corp., +1-713-570-3000; or Ken Dennard, kdennard@easterly.com, or Lisa Elliott, lisae@easterly.com, both of Easterly Investor Relations, +1-713-529-6600, for Crown Castle International Corp./