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8-K - FORM 8-K - CROWN CASTLE INTERNATIONAL CORPc11506e8vk.htm
Exhibit 99.1
(NEWS RELEASE LOGO)
         
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
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.”
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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.
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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.”
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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 Castle’s filings with the Securities and Exchange Commission (“SEC”).
The following Outlook table is based on current expectations and assumptions and assumes a US dollar to Australian dollar exchange rate of 0.90 US dollars to 1.00 Australian dollar for first quarter 2011 and full year 2011 Outlook.
The following table sets forth Crown Castle’s 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.
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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 company’s website at http://investor.crowncastle.com shortly after the call and will be accessible for approximately 90 days.
Crown Castle owns, operates, and leases towers and other infrastructure for wireless communications. Crown Castle offers significant wireless communications coverage to 92 of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and approximately 1,600 wireless communication sites in the US and Australia, respectively. For more information on Crown Castle, please visit www.crowncastle.com.
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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.
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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.
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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.
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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 management’s 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.
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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.
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()
  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  
 
           
(SHAPING THE WIRELESE WORLD)

 

 


 

News Release continued:   Page 12 of 13
     
(CROWN CASTLE LOGO)
  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  
 
                       
(SHAPING THE WIRELESS WORLD LOGO)

 

 


 

News Release continued:   Page 13 of 13
     
(CROWN CASTLE LOGO)
  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  
(SHAPING THE WIRELESS WORLD LOGO)

 

 


 

CCI FACT SHEET Q4 2009 to Q4 2010
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)
                                                                                                 
    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)
                                 
    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.