Attached files
file | filename |
---|---|
8-K - FORM 8-K - CROWN CASTLE INTERNATIONAL CORP | c11506e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
|
Contacts: | Jay Brown, CFO | ||
Fiona McKone, VP Finance | ||||
Crown Castle International Corp. | ||||
713-570-3050 |
CROWN CASTLE INTERNATIONAL REPORTS
FOURTH QUARTER AND FULL YEAR 2010 RESULTS
FOURTH QUARTER AND FULL YEAR 2010 RESULTS
January 26, 2011 HOUSTON, TEXAS Crown Castle International Corp. (NYSE:CCI) today
reported results for the quarter and year ended December 31, 2010.
We had an excellent fourth quarter and full year 2010, growing site rental revenue and
recurring cash flow from 2009 to 2010, by 10% and 22%, respectively, reflecting the continued
strong underlying growth in the business, stated Ben Moreland, President and Chief Executive
Officer. Our U.S. services business also performed exceptionally well, with service revenues up
25%, compared to full year 2009. In addition to excellent financial results in 2010, we refinanced
approximately $3.5 billion of debt, accomplishing our goal of refinancing our near-term debt into
an appropriately laddered maturity structure. Further, during 2010, we closed our acquisition of
NewPath Networks, one of the leading providers of distributed antenna systems networks, furthering
our ability to extend wireless infrastructure to customers beyond those areas served by traditional
towers, and broadening our service offering in this growing market. Finally, following the
completion of our refinancing efforts, we resumed allocating investment capital in a way that we
believe will maximize long-term recurring cash flow per share, including by purchasing our common
shares, by increasing purchases of land beneath our towers, and through our acquisition of NewPath.
In summary, I am very pleased with our 2010 accomplishments and am excited going into 2011 as
growing consumer demand for mobile Internet drives the need for our customers to lease additional
space on our towers.
News Release continued: | Page 2 of 13 |
CONSOLIDATED FINANCIAL RESULTS
Total revenue for the fourth quarter of 2010 increased 12% to $496.3 million from $443.5
million in the same period in 2009. Site rental revenue for the fourth quarter of 2010 increased
$44.6 million, or 11%, to $447.2 million from $402.6 million for the same period in the prior year.
Site rental gross margin, defined as site rental revenue less site rental cost of operations,
increased $41.5 million, or 15%, to $325.5 million in the fourth quarter of 2010 from $284.0
million in the same
period in 2009. Adjusted EBITDA for the fourth quarter of 2010 increased $47.9 million, or
18%, to $311.4 million from $263.5 million in the same period in 2009.
Recurring cash flow, defined as Adjusted EBITDA less interest expense and sustaining capital
expenditures increased 33% to $175.7 million for the fourth quarter of 2010, compared to $132.2
million in the fourth quarter of 2009. Diluted weighted average common shares outstanding was
288.0 million for the fourth quarter of 2010, compared to 290.5 million for the same period in the
prior year. Recurring cash flow per share, defined as recurring cash flow divided by diluted
weighted average common shares outstanding, grew 33% to $0.61 in the fourth quarter of 2010,
compared to $0.46 in the fourth quarter of 2009.
Net income attributable to CCIC stockholders was $40.9 million for the fourth quarter of 2010,
compared to net income attributable to CCIC stockholders of $18.1 million for the same period in
2009. Net income attributable to CCIC stockholders after deduction of dividends on preferred stock
was $35.7 million in the fourth quarter of 2010, compared to net income attributable to CCIC
stockholders after deduction of dividends on preferred stock of $12.9 million for the same period
in 2009. Net income attributable to CCIC common stockholders per common share was $0.12 for the
fourth quarter of 2010, compared to net income attributable to CCIC common stockholders per common
share of $0.04 in the fourth quarter 2009.
Site rental revenues for full year 2010 increased 10% to $1.70 billion, up $157.6 million from
$1.54 billion for full year 2009. Site rental gross margin for full year 2010 increased 14% to
$1.23 billion, up $147.0 million from $1.09 billion for full year 2009. Adjusted EBITDA for full
year 2010 increased $158.6 million, or 16%, to $1.17 billion, up from $1.01 billion for full year
2009. Recurring cash flow increased $118.0 million, or 22%, from $539.3 million for full year
2009 to $657.3 million for full year 2010. Recurring cash flow per share increased 22% to $2.29 in
full year 2010, compared to $1.88 for full year 2009.
Net loss attributable to CCIC stockholders was $310.9 million for full year 2010, inclusive of
$286.4 million of losses on interest rate swaps and $138.4 million losses on the redemption of
debt, compared to a net loss attributable to CCIC stockholders of $114.3 million for full year
2009, inclusive of $93.0 million of losses on interest rate swaps and $91.1 million losses on the
redemption of debt. Net loss attributable to CCIC stockholders after deduction of dividends on
preferred stock was $331.7 million for full year 2010, compared to a net loss attributable to CCIC
stockholders after deduction of dividends on preferred stock of $135.1 million for full year 2009.
Net loss attributable
to CCIC common stockholders per common share was $1.16 for full year 2010, compared to a net
loss attributable to CCIC common stockholders per common share of $0.47 for full year 2009.
News Release continued: | Page 3 of 13 |
FINANCING AND INVESTING ACTIVITIES
During the fourth quarter of 2010, Crown Castle invested approximately $79.8 million in
capital expenditures, comprised of $32.0 million of land purchases, $9.8 million of sustaining
capital expenditures and $38.0 million of revenue generating capital expenditures, the latter
consisting of $26.4 million on existing sites and $11.6 million on the construction of new sites.
Crown Castle spent $12.7 million during the fourth quarter to purchase its common shares at an
average price of $42.42 per share. Diluted common shares outstanding at December 31, 2010 were
288.1 million. Since January 2003, Crown Castle has spent $2.4 billion to purchase approximately
92.6 million of its common shares and potential shares, at an average price of $25.65 per share.
In addition, during fourth quarter 2010, Crown Castle used $431.0 million of cash, including
$157.0 million borrowed under its revolving credit facility, to settle all of its forward-starting
interest rate swaps that were due to be settled during 2011. As of the end of the fourth quarter
of 2010, Crown Castle is no longer a party to any forward-starting interest rate swaps.
Crown Castle had approximately $112.5 million in cash and cash equivalents (excluding
restricted cash) and $243.0 million of availability under its revolving credit facility as of
December 31, 2010.
I am very pleased with our fourth quarter and full year results, stated Jay Brown, Chief
Financial Officer of Crown Castle. As we look forward to our plans for 2011, I am excited about
the anticipated growth in our business and the opportunity to make investments in activities we
believe will maximize long-term recurring cash flow per share. For the full year 2011, we expect
to produce approximately $730 million of recurring cash flow, of which we anticipate spending
approximately $275 million on capital expenditures related to the purchase of land beneath our
towers, the addition of tenants to our towers and the construction of new sites, including
Distributed Antenna Systems. The remaining portion of the recurring cash flow represents
approximately $115 million per quarter of cash flow that I expect will be available to invest in
activities around our core business, including reducing common shares outstanding and acquisitions.
I believe the combination of growth in our core business driven by wireless data deployments and
the investment of our expected cash flow will continue to enhance long-term recurring cash flow per
share.
News Release continued: | Page 4 of 13 |
In addition to the tables and information contained in this press release, Crown Castle will
post supplemental information on its website at
http://investor.crowncastle.com that will be
discussed during its conference call tomorrow morning, Thursday January 27, 2010.
OUTLOOK
This Outlook section contains forward-looking statements, and actual results may differ
materially. Information regarding potential risks which could cause actual results to differ from
the forward-looking statements herein is set forth below and in Crown Castles filings with the
Securities and Exchange Commission (SEC).
The following Outlook table is based on current expectations and assumptions and assumes a US
dollar to Australian dollar exchange rate of 0.90 US dollars to 1.00 Australian dollar for first
quarter 2011 and full year 2011 Outlook.
The following table sets forth Crown Castles current Outlook for the first quarter of 2011
and full year 2011:
(in millions, except per share amounts) | First Quarter 2011 | Full Year 2011 | ||
Site rental revenues |
$445 to $450 | $1,815 to $1,835 | ||
Site rental cost of operations |
$115 to $120 | $470 to $490 | ||
Site rental gross margin |
$328 to $333 | $1,335 to $1,355 | ||
Adjusted EBITDA |
$305 to $310 | $1,248 to $1,268 | ||
Interest expense and amortization of deferred
financing costs(a)(b) |
$125 to $130 | $499 to $509 | ||
Sustaining capital expenditures |
$4 to $6 | $20 to $25 | ||
Recurring cash flow |
$173 to $178 | $721 to $741 | ||
Net income (loss) after deduction of dividends on
preferred stock |
$7 to $33 | $63 to $151 | ||
Net income (loss) per share diluted(c) |
$0.02 to $0.12 | $0.22 to $0.53 |
(a) | Inclusive of approximately $26 million and $103 million, respectively, of non-cash expense. |
|
(b) | Approximately $18 million and $72 million, respectively, of the total non-cash expense
relates to the amortization of forward-starting interest rate swaps, all of which has been
cash settled in prior periods. |
|
(c) | Represents net income (loss) per common share, based on 288.1 million diluted shares
outstanding as of December 31, 2010. |
News Release continued: | Page 5 of 13 |
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, January 27, 2011, at 11:00 a.m.
eastern time. The conference call may be accessed by dialing 480-629-9643 and asking for the Crown
Castle call at least 30 minutes prior to the start time. The conference call may also be accessed
live over the Internet by logging onto the web at http://investor.crowncastle.com. Any
supplemental materials for the call will be posted on the Crown Castle website at
http://investor.crowncastle.com.
A telephonic replay of the conference call will be available from 1:00 p.m. eastern time on
Thursday, January 27, 2011, through 11:59 p.m. eastern time on Thursday, February 3, 2011, and may
be accessed by dialing 303-590-3030 using access code 4396202. An audio archive will also be
available on the companys website at http://investor.crowncastle.com shortly after the call and
will be accessible for approximately 90 days.
Crown Castle owns, operates, and leases towers and other infrastructure for wireless
communications. Crown Castle offers significant wireless communications coverage to 92 of the top
100 US markets and to substantially all of the Australian population. Crown Castle owns, operates
and manages over 22,000 and approximately 1,600 wireless communication sites in the US and
Australia, respectively. For more information on Crown Castle, please visit www.crowncastle.com.
News Release continued: | Page 6 of 13 |
Non-GAAP Financial Measures
This press release includes presentations of Adjusted EBITDA and recurring cash flow, which are
non-GAAP financial measures.
Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits),
asset write-down charges, acquisition and integration costs, depreciation, amortization and
accretion, interest expense and amortization of deferred financing costs, gains (losses) on
purchases and redemptions of debt, net gain (loss) on interest rate swaps, impairment of
available-for-sale securities, interest and other income (expense), benefit (provision) for income
taxes, cumulative effect of change in accounting principle, income (loss) from discontinued
operations and stock-based compensation expense. Adjusted EBITDA is not intended as an alternative
measure of operating results or cash flow from operations (as determined in accordance with
Generally Accepted Accounting Principles (GAAP)).
Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less
sustaining capital expenditures. Each of the amounts included in the calculation of recurring cash
flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures,
which is not defined under GAAP. We define sustaining capital expenditures as capital expenditures
(determined in accordance with GAAP) which do not increase the capacity or life of our revenue
generating assets and include capitalized costs related to (i) maintenance activities on our
towers, (ii) vehicles, (iii) information technology equipment, and (iv) office equipment.
Recurring cash flow is not intended as an alternative measure of cash flow from operations or
operating results (as determined in accordance with GAAP).
Adjusted EBITDA and recurring cash flow are presented as additional information because management
believes these measures are useful indicators of the financial performance of our core businesses.
In addition, Adjusted EBITDA is a measure of current financial performance used in our debt
covenant calculations. Our measures of Adjusted EBITDA and recurring cash flow may not be
comparable to similarly titled measures of other companies, including other companies in the tower
sector. The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP
financial measures.
News Release continued: | Page 7 of 13 |
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures:
Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarters and
years ended December 31, 2010 and 2009 are computed as follows:
For the Three Months Ended | For Twelve Months Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
(in millions, except per share amounts) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Net income (loss) |
$ | 40.9 | $ | 18.7 | $ | (311.3 | ) | $ | (114.1 | ) | ||||||
Adjustments to increase (decrease) net income (loss): |
||||||||||||||||
Asset write-down charges |
5.1 | 4.8 | 13.7 | 19.2 | ||||||||||||
Acquisition and integration costs |
1.0 | | 2.1 | | ||||||||||||
Depreciation, amortization and accretion |
137.3 | 133.5 | 540.8 | 529.7 | ||||||||||||
Interest expense and amortization of deferred financing costs |
125.9 | 118.9 | 490.3 | 445.9 | ||||||||||||
Gains (losses) on purchases and redemption of debt |
| 0.9 | 138.4 | 91.1 | ||||||||||||
Net gain (loss) on interest rate swaps |
(5.9 | ) | (21.1 | ) | 286.4 | 93.0 | ||||||||||
Interest and other income (expense) |
(0.6 | ) | 0.2 | (1.6 | ) | (5.4 | ) | |||||||||
Benefit (provision) for income taxes |
(4.2 | ) | 1.9 | (26.8 | ) | (76.4 | ) | |||||||||
Stock-based compensation charges |
11.9 | 5.7 | 40.0 | 30.3 | ||||||||||||
Adjusted EBITDA |
$ | 311.4 | $ | 263.5 | $ | 1,171.9 | $ | 1,013.3 | ||||||||
Less: Interest expense and amortization of deferred
financing costs |
125.9 | 118.9 | 490.3 | 445.9 | ||||||||||||
Less: Sustaining capital expenditures |
9.8 | 12.4 | 24.3 | 28.1 | ||||||||||||
Recurring cash flow |
$ | 175.7 | $ | 132.2 | $ | 657.3 | $ | 539.3 | ||||||||
Weighted
average common shares outstanding diluted |
288.0 | 290.5 | 286.8 | 286.6 | ||||||||||||
Recurring cash flow per share |
$ | 0.61 | $ | 0.46 | $ | 2.29 | $ | 1.88 | ||||||||
Other Calculations:
Adjusted EBITDA and recurring cash flow for the quarter ending March 31, 2011 and the year
ending December 31, 2011 are forecasted as follows:
Q1 2011 | Full Year 2011 | |||
(in millions) | Outlook | Outlook | ||
Net income (loss) |
$12 to $38 | $84 to $172 | ||
Adjustments to increase (decrease) net income (loss): |
||||
Asset write-down charges |
$3 to $6 | $13 to $23 | ||
Gains (losses) on purchases and redemptions of debt |
| | ||
Depreciation, amortization and accretion |
$135 to $140 | $542 to $562 | ||
Acquisition and integration costs |
$1 to $2 | $1 to $3 | ||
Interest and other income (expense) |
$(1) to $1 | $(4) to $4 | ||
Interest expense and amortization of deferred financing costs(a)(b) |
$125 to $130 | $499 to $509 | ||
Benefit (provision) for income taxes |
$0 to $3 | $15 to $25 | ||
Stock-based compensation charges |
$9 to $11 | $30 to $38 | ||
Adjusted EBITDA |
$305 to $310 | $1,248 to $1,268 | ||
Less: Interest expense and amortization of deferred financing costs(a)(b) |
$125 to $130 | $499 to $509 | ||
Less: Sustaining capital expenditures |
$4 to $6 | $20 to $25 | ||
Recurring cash flow |
$173 to $178 | $721 to $741 | ||
(a) | Inclusive of approximately $26 million and $103 million, respectively, of non-cash expense. |
|
(b) | Approximately $18 million and $72 million, respectively, of the total non-cash expense
relates to the amortization of forward-starting interest rate swaps, all of which has been
cash settled in prior periods. |
News Release continued: | Page 8 of 13 |
The components of interest expense and amortization of deferred financing costs are as follows:
For the Three Months Ended | ||||||||
December 31, | December 31, | |||||||
(in millions) | 2010 | 2009 | ||||||
Interest expense on debt obligations |
$ | 100.2 | $ | 101.1 | ||||
Amortization of deferred financing costs |
3.7 | 7.1 | ||||||
Amortization of discounts on long-term debt |
3.8 | 3.6 | ||||||
Amortization of interest rate swaps |
17.9 | 6.5 | ||||||
Other |
0.3 | 0.5 | ||||||
$ | 125.9 | $ | 118.9 | |||||
The components of interest expense and amortization of deferred financing costs are forecasted
as follows:
Q1 2011 | Full Year 2011 | |||||||
(in millions) | Outlook | Outlook | ||||||
Interest expense on debt obligations |
$100 to $102 | $397 to $402 | ||||||
Amortization of deferred financing costs |
$3 to $4 | $14 to $16 | ||||||
Amortization of discounts on long-term debt |
$3 to $4 | $15 to $17 | ||||||
Amortization of interest rate swaps |
$17 to $20 | $69 to $74 | ||||||
Other |
$0 to $1 | $1 to $3 | ||||||
$125 to $130 | $499 to $509 | |||||||
Debt balances and maturity dates as of December 31, 2010
(in millions) | Face Value | Final Maturity | ||||||
Revolver |
$ | 157.0 | September 2013 | |||||
2007 Crown Castle Operating Company Term Loan |
625.6 | March 2014 | ||||||
9% Senior Notes Due 2015 |
866.9 | January 2015 | ||||||
7.5% Senior Notes Due 2013 |
0.1 | December 2013 | ||||||
7.75% Senior Secured Notes Due 2017 |
1,000.4 | May 2017 | ||||||
7.125% Senior Notes Due 2019 |
500.0 | November 2019 | ||||||
Senior Secured Notes, Series 2009-1(a) |
233.1 | Various | ||||||
Senior Secured Tower Revenue Notes, Series 2010-1-2010-3(b) |
1,900.0 | Various | ||||||
Senior Secured Tower Revenue Notes, Series 2010-4-2010-6(c) |
1,550.0 | Various | ||||||
Capital Leases and Other Obligations |
34.5 | Various | ||||||
Total Debt |
$ | 6,867.6 | ||||||
Less: Cash and Cash Equivalents(d) |
112.5 | |||||||
Net Debt |
$ | 6,755.1 | ||||||
(a) | The 2009 Securitized Notes consist of $163.1 million of principal as of December 31, 2010
that amortizes during the period beginning January 2010 and ending in 2019, and $70.0 million
of principal that amortizes during the period beginning in 2019 and ending in 2029. |
|
(b) | The Senior Secured Tower Revenue Notes, Series 2010-1, 2010-2, and 2010-3 have principal
amounts of $300.0 million, $350.0 million, and $1,250.0 million with anticipated repayment
dates of 2015, 2017, and 2020, respectively. |
|
(c) | The Senior Secured Tower Revenue Notes, Series 2010-4, 2010-5, and 2010-6 have principal
amounts of $250.0 million, $300.0 million and $1,000.0 million with anticipated repayment
dates of 2015, 2017 and 2020, respectively. |
|
(d) | Excludes restricted cash. |
News Release continued: | Page 9 of 13 |
Sustaining capital expenditures for the quarters and years ended December 31, 2010 and
December 31, 2009 is computed as follows:
For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||||
(in millions) | 2010 | 2009 | 2010 | 2009 | ||||||||||||
Capital Expenditures |
$ | 79.8 | $ | 62.2 | $ | 228.1 | $ | 173.5 | ||||||||
Less: Revenue enhancing on existing sites |
26.4 | 27.3 | 73.9 | 101.3 | ||||||||||||
Less: Land purchases |
32.0 | 19.4 | 109.1 | 25.5 | ||||||||||||
Less: New site construction |
11.6 | 3.2 | 20.7 | 18.7 | ||||||||||||
Sustaining capital expenditures |
$ | 9.8 | $ | 12.4 | $ | 24.3 | $ | 28.1 | ||||||||
Site rental gross margin for the quarter ending March 31, 2011 and for the year ending December
31, 2011 is forecasted as follows:
Q1 2011 | Full Year 2011 | |||||||
(in millions) | Outlook | Outlook | ||||||
Site rental revenue |
$445 to $450 | $1,815 to $1,835 | ||||||
Less: Site rental cost of operations |
$115 to $120 | $470 to $490 | ||||||
Site rental gross margin |
$328 to $333 | $1,335 to $1,355 | ||||||
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements and information that are based on our
managements current expectations. Such statements include, but are not limited to, plans,
projections, Outlook and estimates regarding (i) demand for wireless infrastructure and our sites
and towers, (ii) wireless data and network deployments and the demand for mobile Internet and data
services, (iii) the growth of our business, (iv) our investments of cash from cash flows and other
sources, including the availability and type of investments and the impact and return on our
investments, (v) currency exchange rates, (vi) site rental revenues, (vii) site rental cost of
operations, (viii) site rental gross margin, (ix) Adjusted EBITDA, (x) interest expense and
amortization of deferred financing costs, (xi) capital expenditures, including sustaining capital
expenditures, (xii) recurring cash flow, including on a per share basis, (xiii) net income (loss),
including on a per share basis, and (xiv) the utility of certain financial measures in analyzing
our results. Such forward-looking statements are subject to certain risks, uncertainties and
assumptions, including but not limited to prevailing market conditions and the following:
| Our business depends on the demand for wireless communications and towers, and we
may be adversely affected by any slowdown in such demand. |
| A substantial portion of our revenues is derived from a small number of customers,
and the loss, consolidation or financial instability of, or network sharing among, any
of our limited number of customers may materially decrease revenues and reduce demand
for our towers and network services. |
| Consolidation among our customers may result in duplicate or overlapping parts of
networks, which may result in a reduction of sites and have a negative effect on
revenues and cash flows. |
| Our substantial level of indebtedness could adversely affect our ability to react
to changes in our business, and the terms of our debt instruments limit our ability to
take a number of actions that our management might otherwise believe to be in our best
interests. In addition, if we fail to comply with our covenants, our debt could be
accelerated. |
| We have a substantial amount of indebtedness. In the event we do not repay or
refinance such indebtedness, we could face substantial liquidity issues and might be
required to issue equity securities or securities convertible into equity securities,
or sell some of our assets to meet our debt payment obligations. |
| Sales or issuances of a substantial number of shares of our common stock may
adversely affect the market price of our common stock. |
News Release continued: | Page 10 of 13 |
| A wireless communications industry slowdown may materially and adversely affect our
business (including reducing demand for our towers and network services) and the
business of our customers. |
| As a result of competition in our industry, including from some competitors with
significantly more resources or less debt than we have, we may find it more difficult
to achieve favorable rental rates on our new or renewing customer leases. |
| New technologies may significantly reduce demand for our towers and negatively
impact our revenues. |
| New wireless technologies may not deploy or be adopted by customers as rapidly or
in the manner projected. |
| If we fail to retain rights to the land under our towers, our business may be
adversely affected. |
| Our network services business has historically experienced significant volatility
in demand, which reduces the predictability of our results. |
| If we fail to comply with laws and regulations which regulate our business and
which may change at any time, we may be fined or even lose our right to conduct some
of our business. |
| If radio frequency emissions from wireless handsets or equipment on our towers are
demonstrated to cause negative health effects, potential future claims could adversely
affect our operations, costs and revenues. |
| Certain provisions of our certificate of incorporation, bylaws and operative
agreements and domestic and international competition laws may make it more difficult
for a third party to acquire control of us or for us to acquire control of a third
party, even if such a change in control would be beneficial to our stockholders. |
| We may be adversely affected by our exposure to changes in foreign currency
exchange rates relating to our operations in Australia. |
Should one or more of these or other risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from those expected. More
information about potential risk factors which could affect our results is included in our filings
with the SEC.
News Release continued: | Page 11 of 13 |
CROWN CASTLE INTERNATIONAL CORP. CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) (in thousands) |
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
112,531 | $ | 766,146 | |||||
Restricted cash |
221,015 | 213,514 | ||||||
Receivables, net |
59,912 | 44,431 | ||||||
Deferred income tax assets |
59,098 | 76,089 | ||||||
Prepaid expenses, deferred site rental receivables and other current assets, net |
92,589 | 95,853 | ||||||
Total current assets |
545,145 | 1,196,033 | ||||||
Property and equipment, net |
4,893,651 | 4,895,983 | ||||||
Goodwill |
2,029,296 | 1,984,804 | ||||||
Other intangible assets, net |
2,313,929 | 2,405,422 | ||||||
Deferred site rental receivables, long-term prepaid rent, deferred financing costs
and other assets, net |
687,508 | 474,364 | ||||||
$ | 10,469,529 | $ | 10,956,606 | |||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable and other accrued liabilities |
$ | 204,877 | $ | 197,139 | ||||
Deferred revenues |
202,123 | 179,649 | ||||||
Interest rate swaps |
5,198 | 160,121 | ||||||
Short-term debt, current maturities of debt and other obligations |
28,687 | 217,196 | ||||||
Total current liabilities |
440,885 | 754,105 | ||||||
Debt and other long-term obligations |
6,750,207 | 6,361,954 | ||||||
Deferred income tax liabilities |
66,686 | 74,117 | ||||||
Deferred ground lease payable, interest rate swaps and other liabilities |
450,176 | 514,691 | ||||||
Total liabilities |
7,707,954 | 7,704,867 | ||||||
Redeemable preferred stock |
316,581 | 315,654 | ||||||
CCIC Stockholders equity |
2,445,373 | 2,936,241 | ||||||
Noncontrolling interest |
(379 | ) | (156 | ) | ||||
Total equity |
2,444,994 | 2,936,085 | ||||||
$ | 10,469,529 | $ | 10,956,606 | |||||
News Release continued: | Page 12 of 13 |
CROWN CASTLE INTERNATIONAL CORP. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) AND OTHER FINANCIAL DATA (in thousands, except per share data) |
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net revenues: |
||||||||||||||||
Site rental |
$ | 447,179 | $ | 402,615 | $ | 1,700,761 | $ | 1,543,192 | ||||||||
Network services and other |
49,135 | 40,929 | 177,897 | 142,215 | ||||||||||||
Total net revenues |
496,314 | 443,544 | 1,878,658 | 1,685,407 | ||||||||||||
Costs of operations (exclusive of depreciation, amortization and
accretion): |
||||||||||||||||
Site rental |
121,683 | 118,581 | 467,136 | 456,560 | ||||||||||||
Network services and other |
31,251 | 28,125 | 114,241 | 92,808 | ||||||||||||
Total costs of operations |
152,934 | 146,706 | 581,377 | 549,368 | ||||||||||||
General and administrative |
43,908 | 39,103 | 165,356 | 153,072 | ||||||||||||
Asset write-down charges |
5,099 | 4,778 | 13,687 | 19,237 | ||||||||||||
Acquisition and integration costs |
962 | | 2,102 | | ||||||||||||
Depreciation, amortization and accretion |
137,259 | 133,503 | 540,771 | 529,739 | ||||||||||||
Operating income (loss) |
156,152 | 119,454 | 575,365 | 433,991 | ||||||||||||
Interest expense and amortization of deferred financing costs |
(125,947 | ) | (118,876 | ) | (490,269 | ) | (445,882 | ) | ||||||||
Gains (losses) on purchases and redemptions of debt |
| (905 | ) | (138,367 | ) | (91,079 | ) | |||||||||
Net gain (loss) on interest rate swaps |
5,860 | 21,094 | (286,435 | ) | (92,966 | ) | ||||||||||
Interest and other income (expense) |
616 | (159 | ) | 1,601 | 5,413 | |||||||||||
Income (loss) before income taxes |
36,681 | 20,608 | (338,105 | ) | (190,523 | ) | ||||||||||
Benefit (provision) for income taxes |
4,224 | (1,876 | ) | 26,846 | 76,400 | |||||||||||
Net income (loss) |
40,905 | 18,732 | (311,259 | ) | (114,123 | ) | ||||||||||
Less: Net income (loss) attributable to the noncontrolling interest |
32 | 584 | (319 | ) | 209 | |||||||||||
Net income (loss) attributable to CCIC stockholders |
40,873 | 18,148 | (310,940 | ) | (114,332 | ) | ||||||||||
Dividends on preferred stock |
(5,202 | ) | (5,202 | ) | (20,806 | ) | (20,806 | ) | ||||||||
Net income (loss) attributable to CCIC stockholders after deduction
of dividends on preferred stock |
$ | 35,671 | $ | 12,946 | $ | (331,746 | ) | $ | (135,138 | ) | ||||||
Net income (loss) attributable to CCIC common stockholders, after
deduction of dividends on preferred stock, per common share: |
||||||||||||||||
Basic |
$ | 0.12 | $ | 0.04 | $ | (1.16 | ) | $ | (0.47 | ) | ||||||
Diluted |
$ | 0.12 | $ | 0.04 | $ | (1.16 | ) | $ | (0.47 | ) | ||||||
Weighted average common shares outstanding (in thousands): |
||||||||||||||||
Basic |
286,406 | 287,421 | 286,764 | 286,622 | ||||||||||||
Diluted |
288,000 | 290,470 | 286,764 | 286,622 | ||||||||||||
Adjusted EBITDA |
$ | 311,417 | $ | 263,465 | $ | 1,171,890 | $ | 1,013,272 | ||||||||
Stock-based compensation expenses: |
||||||||||||||||
Site rental cost of operations |
$ | 330 | $ | 267 | 1,131 | 967 | ||||||||||
Network services and other cost of operations |
472 | 314 | 1,568 | 1,207 | ||||||||||||
General and administrative |
11,143 | 5,149 | 37,266 | 28,131 | ||||||||||||
Total |
$ | 11,945 | $ | 5,730 | $ | 39,965 | $ | 30,305 | ||||||||
News Release continued: | Page 13 of 13 |
CROWN CASTLE INTERNATIONAL CORP. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) (in thousands) |
Twelve Months Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | (311,259 | ) | $ | (114,123 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating
activities: |
||||||||
Depreciation, amortization and accretion |
540,771 | 529,739 | ||||||
Gains (losses) on purchases and redemptions of long-term debt |
138,367 | 91,079 | ||||||
Amortization of deferred financing costs and other non-cash interest |
85,454 | 61,357 | ||||||
Stock-based compensation expense |
36,540 | 29,225 | ||||||
Asset write-down charges |
13,687 | 19,237 | ||||||
Deferred income tax benefit (provision) |
(26,196 | ) | (74,410 | ) | ||||
Income (expense) from forward-starting interest rate swaps |
286,435 | 90,302 | ||||||
Other adjustments, net |
857 | 821 | ||||||
Changes in assets and liabilities, excluding the effects of acquisitions: |
||||||||
Increase (decrease) in liabilities |
36,429 | 60,319 | ||||||
Decrease (increase) in assets |
(197,655 | ) | (122,290 | ) | ||||
Net cash provided by (used for) operating activities |
603,430 | 571,256 | ||||||
Cash flows from investing activities: |
||||||||
Proceeds from disposition of property and equipment |
3,092 | 3,988 | ||||||
Payments for acquisitions (net of cash acquired) of businesses |
(139,158 | ) | (2,598 | ) | ||||
Capital expenditures |
(228,058 | ) | (173,535 | ) | ||||
Payments for investments and other |
(26,825 | ) | | |||||
Net cash provided by (used for) investing activities |
(390,949 | ) | (172,145 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of long-term debt |
3,450,000 | 2,726,348 | ||||||
Proceeds from issuance of capital stock |
18,731 | 45,049 | ||||||
Principal payments on long-term debt and other long-term obligations |
(26,397 | ) | (6,500 | ) | ||||
Purchases and redemptions of long-term debt |
(3,541,312 | ) | (2,191,719 | ) | ||||
Purchases of capital stock |
(159,640 | ) | (3,003 | ) | ||||
Borrowings under revolving credit agreements |
157,000 | 50,000 | ||||||
Payments under revolving credit agreements |
| (219,400 | ) | |||||
Payments for financing costs |
(59,259 | ) | (67,760 | ) | ||||
Payments for forward-starting interest rate swap settlements |
(697,821 | ) | (36,670 | ) | ||||
Net decrease (increase) in restricted cash |
11,953 | (62,071 | ) | |||||
Dividends on preferred stock |
(19,879 | ) | (19,878 | ) | ||||
Net cash provided by (used for) financing activities |
(866,624 | ) | 214,396 | |||||
Effect of exchange rate changes on cash |
528 | (2,580 | ) | |||||
Net increase (decrease) in cash and cash equivalents |
(653,615 | ) | 610,927 | |||||
Cash and cash equivalents at beginning of period |
766,146 | 155,219 | ||||||
Cash and cash equivalents at end of period |
$ | 112,531 | $ | 766,146 | ||||
Supplemental disclosure of cash flow information: |
||||||||
Interest paid |
$ | 409,293 | $ | 331,681 | ||||
Income taxes paid (refund) |
(5,935 | ) | 5,597 |
CCI FACT SHEET Q4 2009 to Q4 2010
dollars in millions
dollars in millions
Q4 09 | Q4 10 | % Change | ||||||||||
CCUSA |
||||||||||||
Site Rental Revenues |
$ | 381.1 | $ | 421.9 | 11 | % | ||||||
Ending Sites |
22,365 | 22,249 | -1 | % | ||||||||
CCAL |
||||||||||||
Site Rental Revenues |
$ | 21.5 | $ | 25.3 | 18 | % | ||||||
Ending Sites |
1,592 | 1,596 | 0 | % | ||||||||
TOTAL CCIC |
||||||||||||
Site Rental Revenues |
$ | 402.6 | $ | 447.2 | 11 | % | ||||||
Ending Sites |
23,957 | 23,845 | 0 | % | ||||||||
Ending Cash and Cash Equivalents |
$ | 766.1 | * | $ | 112.5 | * | ||||||
Total Face Value of Debt |
$ | 6,690.6 | $ | 6,867.6 | ||||||||
Net Leverage Ratios (1) |
||||||||||||
Net Debt / EBITDA |
5.6X | 5.4X | ||||||||||
Last Quarter Annualized Adjusted EBITDA |
$ | 1,053.9 | $ | 1,245.7 |
* | Excludes Restricted Cash |
|
(1) | Based on Face Values |
|
Note: | Components may not sum to total due to rounding. |
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(dollars in millions)
Summary Fact Sheet
(dollars in millions)
Quarter Ended 3/31/10 | Quarter Ended 6/30/10 | Quarter Ended 9/30/10 | Quarter Ended 12/31/10 | |||||||||||||||||||||||||||||||||||||||||||||
CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | |||||||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||||||||||
Site Rental |
$ | 384.0 | $ | 22.8 | $ | 406.9 | $ | 388.0 | $ | 21.7 | $ | 409.6 | $ | 414.3 | $ | 22.8 | $ | 437.1 | $ | 421.9 | $ | 25.3 | $ | 447.2 | ||||||||||||||||||||||||
Services |
34.8 | 2.6 | 37.5 | 44.3 | 2.2 | 46.5 | 42.5 | 2.3 | 44.8 | 46.4 | 2.7 | 49.1 | ||||||||||||||||||||||||||||||||||||
Total Revenues |
418.9 | 25.4 | 444.3 | 432.2 | 23.9 | 456.1 | 456.8 | 25.1 | 481.9 | 468.3 | 28.0 | 496.3 | ||||||||||||||||||||||||||||||||||||
Operating Expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Site Rental |
107.0 | 6.7 | 118.6 | 108.7 | 6.8 | 115.5 | 109.0 | 7.3 | 116.2 | 113.2 | 8.5 | $ | 121.7 | |||||||||||||||||||||||||||||||||||
Services |
24.3 | 2.0 | 26.3 | 28.5 | 1.4 | 29.9 | 25.2 | 1.6 | 26.8 | 29.7 | 1.6 | 31.3 | ||||||||||||||||||||||||||||||||||||
Total Operating Expenses |
131.3 | 8.7 | 140.1 | 137.2 | 8.2 | 145.4 | 134.2 | 8.8 | 143.0 | 142.8 | 10.1 | 152.9 | ||||||||||||||||||||||||||||||||||||
General & Administrative |
35.0 | 4.5 | 39.5 | 36.9 | 3.7 | 40.6 | 37.5 | 3.9 | 41.4 | 39.0 | 4.9 | 43.9 | ||||||||||||||||||||||||||||||||||||
Add: Stock-Based Compensation |
8.3 | 1.2 | 9.4 | 9.9 | 0.0 | 9.9 | 8.0 | 0.6 | 8.7 | 10.4 | 1.6 | 11.9 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA |
$ | 260.9 | $ | 13.4 | $ | 274.3 | $ | 268.1 | $ | 12.0 | $ | 280.1 | $ | 293.2 | $ | 12.9 | $ | 306.1 | $ | 296.8 | $ | 14.6 | $ | 311.4 | ||||||||||||||||||||||||
Quarter Ended 3/31/10 | Quarter Ended 6/30/10 | Quarter Ended 9/30/10 | Quarter Ended 12/31/10 | |||||||||||||||||||||||||||||||||||||||||||||
CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | |||||||||||||||||||||||||||||||||||||
Gross Margins: |
||||||||||||||||||||||||||||||||||||||||||||||||
Site Rental |
72 | % | 71 | % | 72 | % | 72 | % | 69 | % | 72 | % | 74 | % | 68 | % | 73 | % | 73 | % | 66 | % | 73 | % | ||||||||||||||||||||||||
Services |
30 | % | 23 | % | 30 | % | 36 | % | 36 | % | 36 | % | 41 | % | 31 | % | 40 | % | 36 | % | 42 | % | 36 | % | ||||||||||||||||||||||||
Adjusted EBITDA Margin |
62 | % | 53 | % | 62 | % | 62 | % | 50 | % | 61 | % | 64 | % | 52 | % | 64 | % | 63 | % | 52 | % | 63 | % | ||||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP Financial Measure:
(dollars in millions)
(dollars in millions)
Quarter Ended | ||||||||||||||||
3/31/2010 | 6/30/2010 | 9/30/2010 | 12/31/2010 | |||||||||||||
Net income (loss) |
$ | (119.4 | ) | $ | (97.6 | ) | $ | (135.2 | ) | $ | 40.9 | |||||
Adjustments to increase (decrease) net income (loss): |
||||||||||||||||
Asset write-down charges |
1.6 | 2.6 | 4.4 | 5.1 | ||||||||||||
Acquisition and integration costs |
0.0 | 0.3 | 0.9 | 1.0 | ||||||||||||
Depreciation, amortization and accretion |
132.9 | 134.4 | 136.2 | 137.3 | ||||||||||||
Gains (losses) on purchases and redemptions of debt |
66.4 | 0.0 | 71.9 | 0.0 | ||||||||||||
Interest and other income (expense) |
(0.4 | ) | 0.2 | (0.8 | ) | (0.6 | ) | |||||||||
Net gain (loss) on interest rate swaps |
73.3 | 114.6 | 104.4 | (5.9 | ) | |||||||||||
Interest expense, amortization of deferred financing costs |
120.8 | 120.3 | 123.2 | 125.9 | ||||||||||||
Benefit (provision) for income taxes |
(10.3 | ) | (4.7 | ) | (7.6 | ) | (4.2 | ) | ||||||||
Stock-based compensation |
9.4 | 9.9 | 8.7 | 11.9 | ||||||||||||
Adjusted EBITDA |
$ | 274.3 | $ | 280.1 | $ | 306.1 | $ | 311.4 | ||||||||
Note: | Components may not sum to total due to rounding. |