CROWN CASTLE INTERNATIONAL CORP - FORM 8-K - EX-99.2 - April 22, 2015

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Exhibit 99.2















Supplemental Information Package
and Non-GAAP Reconciliations
First Quarter • March 31, 2015




The Foundation for a Wireless World.
CrownCastle.com

Crown Castle International Corp.
First Quarter 2015



TABLE OF CONTENTS
 
Page
Company Overview
 
Company Profile
Strategy
Historical Dividend and AFFO per Share
Portfolio Footprint
Corporate Information
Research Coverage
Historical Common Stock Data
Portfolio and Financial Highlights
7
Outlook
Financials & Metrics
 
Consolidated Balance Sheet
Consolidated Statement of Operations
Segment Operating Results
FFO and AFFO Reconciliations
Consolidated Statement of Cash Flows
Site Rental Revenue Growth
Site Rental Gross Margin Growth
Summary of Straight-Line, Prepaid Rent Activity, and Capital Expenditures
Lease Renewal and Lease Distribution
Customer Overview
Asset Portfolio Overview
 
Summary of Tower Portfolio by Vintage
Portfolio Overview
Ground Interest Overview
Ground Interest Activity
Small Cell Network Overview
Capitalization Overview
 
Capitalization Overview
Debt Maturity Overview
Liquidity Overview
Maintenance and Financial Covenants
Interest Rate Sensitivity
Appendix

Cautionary Language Regarding Forward-Looking Statements
This supplemental information package ("Supplement") contains forward-looking statements and information that are based on our management's current expectations as of the date of this Supplement. Statements that are not historical facts are hereby identified as forward-looking statements. Words such as "Outlook", "guide", "forecast", "estimate", "anticipate", "project", "plan", "intend", "believe", "expect", "likely", "predicted", and any variations of these words and similar expressions are intended to identify such forward looking statements. Such statements include, but are not limited to, our Outlook for the second quarter 2015 and full year 2015 .

Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including, but not limited to, prevailing market conditions. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the Securities and Exchange Commission. Crown Castle assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

The components of financial information presented herein, both historical and forward looking, may not sum due to rounding. Definitions and reconciliations of non-GAAP measures, including FFO and AFFO, are provided in the Appendix to this Supplement.

As used herein, the term "including" and any variation thereof, means "including without limitation." The use of the word "or" herein is not exclusive.

1
Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


COMPANY PROFILE 
Crown Castle International Corp. (to which the terms "Crown Castle," "CCIC," "we," "our," "our Company," "the Company" or "us" as used herein refer) owns, operates and leases shared wireless infrastructure, including: (1) towers and other structures, such as rooftops (collectively, "towers"), and to a lesser extent, (2) distributed antenna systems, a type of small cell network ("small cells"), and (3) interests in land under third party towers in various forms ("third party land interests") (collectively, "wireless infrastructure"). Crown Castle offers significant wireless communications coverage in each of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages approximately 40,000 and 1,800 towers in the US and Australia, respectively.
Our core business is providing access, including space or capacity, to our wireless infrastructure via long-term contracts in various forms, including license, sublease and lease agreements (collectively, "leases"). Our wireless infrastructure can accommodate multiple customers for antennas or other equipment necessary for the transmission of signals for wireless communication devices. We seek to increase our site rental revenues by adding more tenants on our wireless infrastructure, which we expect to result in significant incremental cash flows due to our relatively fixed operating costs.
Effective January 1, 2014, Crown Castle commenced operating as a Real Estate Investment Trust ("REIT") for U.S. federal income tax purposes as it relates to our towers and third party land interests, excluding our operations in Australia. In August 2014, we received a favorable private letter ruling from the IRS, which provides that the real property portion of our small cells and the related rents qualify as real property and rents from real property, respectively, under the rules governing REITs. We are evaluating the impact of this private letter ruling and, subject to board approval, we expect to take appropriate action to include at least some part of our small cells as part of the REIT during 2015.
STRATEGY 
Our strategy is to create long-term stockholder value via a combination of (1) growing cash flows generated from our portfolio of wireless infrastructure, (2) returning a meaningful portion of our cash provided by operating activities to our stockholders in the form of dividends and (3) investing capital efficiently to grow long-term dividends per share. We measure our efforts to create "long-term stockholder value" by the combined payment of dividends to stockholders and growth in our per share results. The key elements of our strategy are to:
•
Grow cash flows from our wireless infrastructure. We seek to maximize the site rental cash flows derived from our wireless infrastructure by adding tenants on our wireless infrastructure through long-term leases as our customers deploy and improve their wireless networks. We seek to maximize new tenant additions or modifications of existing tenant installations (collectively, "new tenant additions") through our focus on customer service and deployment speed. Due to the relatively fixed nature of the costs to operate our wireless infrastructure (which tend to increase at approximately the rate of inflation), we expect increases in our site rental cash flows from new tenant additions and the related subsequent impact from contracted escalations to result in growth in our operating cash flows. We believe there is considerable additional future demand for our existing wireless infrastructure based on their location and the anticipated growth in the wireless communication services industry. Substantially all of our wireless infrastructure can accommodate additional tenancy, either as currently constructed or with appropriate modifications to the structure, which we expect to have high incremental returns.
•
Return cash provided by operating activities to stockholders in the form of dividends. We believe that distributing a meaningful portion of our cash provided by operating activities appropriately provides stockholders with increased certainty for a portion of expected long-term stockholder value while still retaining sufficient flexibility to invest in our business and deliver growth. We believe this decision reflects the translation of the high-quality, long-term contractual cash flows of our business into stable capital returns to stockholders.
•
Invest capital efficiently to grow long-term dividends per share. We seek to invest our capital available, including the net cash provided by our operating activities and external financing sources, in a manner that will increase long-term stockholder value on a risk-adjusted basis. Our historical investments have included the following (in no particular order):
◦
purchase shares of our common stock from time to time;
◦
acquire or construct wireless infrastructure;
◦
acquire land interests under towers;
◦
make improvements and structural enhancements to our existing wireless infrastructure; or
◦
purchase, repay or redeem our debt.

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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

Our strategy to create long-term stockholder value is based on our belief that additional demand for our wireless infrastructure will be created by the expected continued growth in the wireless communication services industry, which is predominately driven by the demand for wireless data services by consumers. We believe that such demand for our wireless infrastructure will continue, will result in growth of our cash flows due to new tenant additions on our existing wireless infrastructure, and will create other growth opportunities for us, such as demand for new wireless infrastructure.




3
Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


HISTORICAL DIVIDEND AND AFFO PER SHARE (1)
GLOBAL FOOTPRINT
U.S. FOOTPRINT
 
AUSTRALIAN FOOTPRINT
 
(1)
See reconciliations and definitions provided herein. See also "Definitions of Non-GAAP Financial Measures and Other Calculations" in the Appendix for a discussion of the definitions of FFO and AFFO.
(2)
Last quarter annualized ("LQA") calculated as the most recently completed quarterly period times four.


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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

GENERAL COMPANY INFORMATION
Principal executive offices
1220 Augusta Drive, Suite 600, Houston, TX 77057
Common shares trading symbol
CCI
Stock exchange listing
New York Stock Exchange
Fiscal year ending date
December 31
Fitch - Long Term Issuer Default Rating
BB
Moody’s - Long Term Corporate Family Rating
Ba2
Standard & Poor’s - Long Term Local Issuer Credit Rating
BB+

Note: These credit ratings may not reflect the potential risks relating to the structure or trading of the Company’s securities and are provided solely for informational purposes. Credit ratings are not recommendations to buy, sell or hold any security, and may be revised or withdrawn at any time by the issuing organization in its sole discretion. The Company does not undertake any obligation to maintain the ratings or to advise of any change in the ratings. Each agency’s rating should be evaluated independently of any other agency’s rating. An explanation of the significances of the ratings can be obtained from each of the ratings agencies.

EXECUTIVE MANAGEMENT TEAM
Name
Age
Years with Company
Position
W. Benjamin Moreland
51
15
President and Chief Executive Officer
Jay A. Brown
42
15
Senior Vice President, Chief Financial Officer and Treasurer
James D. Young
53
9
Senior Vice President and Chief Operating Officer
E. Blake Hawk
65
16
Executive Vice President and General Counsel
Patrick Slowey
58
14
Senior Vice President and Chief Commercial Officer
Philip M. Kelley
42
17
Senior Vice President-Corporate Development and Strategy

BOARD OF DIRECTORS
Name
Position
Committees
Age
Years as Director
J. Landis Martin
Chairman
NCG(1) 
69
18
P. Robert Bartolo
Director
Audit, Compensation
43
1
Cindy Christy
Director
NCG(1), Strategy
49
7
Ari Q. Fitzgerald
Director
Compensation, Strategy
52
12
Robert E. Garrison II
Director
Audit, Compensation
73
9
Dale N. Hatfield
Director
NCG(1), Strategy
77
13
Lee W. Hogan
Director
Audit, Compensation, Strategy
70
13
Edward C. Hutcheson
Director
Strategy
69
18
John P. Kelly
Director
Strategy
57
14
Robert F. McKenzie
Director
Audit, Strategy
71
19
W. Benjamin Moreland
Director
 
51
8

(1)
Nominating & Corporate Governance Committee


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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

RESEARCH COVERAGE
Equity Research
Bank of America
David Barden
(646) 855-1320
Barclays
Amir Rozwadowski
(212) 526-4043
Canaccord Genuity
Greg Miller
(212) 389-8128
Citigroup
Michael Rollins
(212) 816-1116
Cowen and Company
Colby Synesael
(646) 562-1355
Credit Suisse
Joseph Mastrogiovanni
(212) 325-3757
Evercore Partners
Jonathan Schildkraut
(212) 497-0864
Goldman Sachs
Brett Feldman
(212) 902-8156
Jefferies
Mike McCormack
(212) 284-2516
JPMorgan
Philip Cusick
(212) 622-1444
Macquarie
Kevin Smithen
(212) 231-0695
Morgan Stanley
Simon Flannery
(212) 761-6432
New Street Research
Jonathan Chaplin
(212) 921-9876
Nomura
Adam Ilkowitz
(212) 298-4121
Oppenheimer & Co.
Timothy Horan
(212) 667-8137
Pacific Crest Securities
Michael Bowen
(503) 727-0721
Raymond James
Ric Prentiss
(727) 567-2567
RBC Capital Markets
Jonathan Atkin
(415) 633-8589
UBS
Batya Levi
(212) 713-8824
Wells Fargo Securities, LLC
Jennifer Fritzsche
(312) 920-3548
 
 
 
 
Rating Agency
Fitch
John Culver
(312) 368-3216
Moody’s
Phil Kibel
(212) 553-1653
Standard & Poor’s
Scott Tan
(212) 438-4162

HISTORICAL COMMON STOCK DATA
 
Three Months Ended
(in millions, except per share data)
3/31/15
12/31/14
9/30/14
6/30/14
3/31/14
High price(1)
$
88.60

$
83.27

$
79.15

$
75.69

$
73.99

Low price(1)
$
77.81

$
73.34

$
70.73

$
69.19

$
66.10

Period end closing price(2)
$
82.54

$
77.95

$
78.89

$
72.43

$
71.62

Dividends paid per common share
$
0.82

$
0.82

$
0.35

$
0.35

$
0.35

Volume weighted average price for the period(1)
$
84.47

$
78.33

$
75.25

$
72.72

$
70.79

Common shares outstanding - diluted, at period end
334

334

334

334

334

Market value of outstanding common shares, at period end(3)
$
27,549

$
26,023

$
26,339

$
24,184

$
23,905


(1)
Based on the sales price, adjusted for common stock dividends, as reported by Bloomberg.
(2)
Based on the period end closing price, adjusted for dividends, as reported by Bloomberg.
(3)
Period end market value of outstanding common shares is calculated as the product of (a) shares of common stock outstanding at period end and (b) closing share price at period end, adjusted for dividends, as reported by Bloomberg.



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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

SUMMARY PORTFOLIO HIGHLIGHTS
(as of March 31, 2015)
U.S.
Australia
Number of towers(1)
39,663

1,777

Average number of tenants per tower
2.2

2.4

Remaining contracted customer receivables ($ in billions)(2)
$
21

$
1

Weighted average remaining customer contract term (years)(3)
7

11

Percent of towers in the Top 50 / 100 Basic Trading Areas
56% / 71%

Not Applicable

Percent of ground leased / owned (by site rental gross margin)
65% / 35%

88% / 12%

Weighted average maturity of ground leases (years)(4)
31

19


SUMMARY FINANCIAL HIGHLIGHTS
 
Three Months Ended March 31,
(dollars in thousands, except per share amounts)
2015
 
2014
Operating Data:
 
 
 
Net revenues
 
 
 
Site rental
$
767,606

 
$
747,162

Network services and other
173,395

 
128,788

Net revenues
$
941,001

 
$
875,950

 
 
 
 
Gross margin
 
 
 
Site rental
$
526,626

 
$
519,086

Network services and other
84,517

 
55,914

Total gross margin
$
611,143

 
$
575,000

 
 
 
 
Net income (loss) attributable to CCIC common stockholders
$
111,790

 
$
90,500

Net income (loss) attributable to CCIC common stockholders per share - diluted
$
0.34

 
$
0.27

 
 
 
 
Non-GAAP Data(5):
 
 
 
Adjusted EBITDA
$
554,254

 
$
526,983

FFO(6)
373,145

 
337,654

AFFO
383,326

 
348,744

AFFO per share
$
1.15

 
$
1.05

 
 
 
 
Summary Cash Flow Data:
 
 
 
Net cash provided by (used for) operating activities
$
460,794

 
$
362,283

Net cash provided by (used for) investing activities(7)
(222,760
)
 
(204,219
)
Net cash provided by (used for) financing activities
(172,241
)
 
(174,459
)

(1)
Includes towers and rooftops, excludes small cells and third-party land interests.
(2)
Excludes renewal terms at customers' opinion.
(3)
Excludes renewal terms at customers' option, weighted by site rental revenues.
(4)
Includes renewal terms at the Company's option, weighted by site rental gross margin.
(5)
See reconciliations and definitions provided herein. See also "Definitions of Non-GAAP Measures and Other Calculations" in the Appendix for a discussion of our definitions of FFO and AFFO.
(6)
Calculated to present the periods shown in a manner which is consistent with our commencement of operations as a REIT on January 1, 2014.
(7)
Includes net cash used for acquisitions of approximately $17 million and $62 million for the three months ended March 31, 2015 and 2014, respectively.




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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

SUMMARY FINANCIAL HIGHLIGHTS (CONTINUED)
 
 
Three Months Ended March 31,
(dollars in thousands, except per share amounts)
 
2015
 
2014
Other Data:
 
 
 
 
Net debt to last quarter annualized Adjusted EBITDA
 
5.3
x
 
5.4
x
Dividend per common share
 
$
0.82

 
$
0.35

AFFO payout ratio(2)
 
71
%
 
33
%
 
 
 
 
 
(dollars in thousands)
 
March 31, 2015
 
December 31, 2014
Balance Sheet Data (at period end):
 
 
 
 
Cash and cash equivalents
 
$
240,153

 
$
175,620

Property and equipment, net
 
9,139,703

 
9,148,311

Total assets
 
21,105,477

 
21,143,276

Total debt and other long-term obligations
 
12,070,091

 
11,920,861

Total CCIC stockholders' equity
 
6,536,720

 
6,716,225


OUTLOOK FOR SECOND QUARTER 2015 AND FULL YEAR 2015
(dollars in millions, except per share amounts)
Second Quarter 2015
Full Year 2015
Site rental revenues
$767 to $772
$3,067 to $3,082
Site rental cost of operations
$242 to $247
$967 to $982
Site rental gross margin
$523 to $528
$2,091 to $2,106
Adjusted EBITDA(2)
$531 to $536
$2,145 to $2,160
Interest expense and amortization of deferred financing costs(1)
$133 to $138
$531 to $546
FFO(2)
$352 to $357
$1,439 to $1,454
AFFO(2)
$348 to $353
$1,450 to $1,465
AFFO per share(2)(3)
$1.04 to $1.06
$4.34 to $4.39
Net income (loss)
$92 to $125
$419 to $498
Net income (loss) per share - diluted(3)
$0.28 to $0.37
$1.26 to $1.49
Net income (loss) attributable to CCIC common stockholders
$80 to $117
$381 to $467
Net income (loss) attributable to CCIC common stockholders per share - diluted(3)
$0.24 to $0.35
$1.14 to $1.40

(1)
See the reconciliation of "components of interest expense and amortization of deferred financing costs" in the Appendix.
(2)
See reconciliations and definitions provided herein.
(3)
Based on 333.9 million diluted shares outstanding as of March 31, 2015.

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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
 FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

OUTLOOK FOR FULL YEAR 2015 SITE RENTAL REVENUE GROWTH
(dollars in millions)
Midpoint of Full Year 2015 Outlook
Full Year 2014
Reported GAAP site rental revenues
$
3,075

$
3,007

Site rental straight-line revenues
(135
)
(197
)
Other - Non-recurring
—

(5
)
Site Rental Revenues, as Adjusted(1)(3)
$
2,940

$
2,805

Cash adjustments:
 
 
FX and other
25

 
New tower acquisitions and builds(2)
(19
)
 
Organic Site Rental Revenues(1)(3)(4)
$
2,946

 
Year-Over-Year Revenue Growth
 
 
Reported GAAP site rental revenues
2.3
%
 
Site Rental Revenues, as Adjusted
4.8
%
 
Organic Site Rental Revenues(5)
5.0
%
 
OUTLOOK FOR ORGANIC SITE RENTAL REVENUE GROWTH
 
Midpoint of Full Year 2015 Outlook
New leasing activity
5.6
 %
Escalators
3.4
 %
Organic Site Rental Revenue Growth, before non-renewals
9.0
 %
Non-renewals
(4.0
)%
Organic Site Rental Revenue Growth(5)
5.0
 %
OUTLOOK FOR FULL YEAR 2015 SITE RENTAL GROSS MARGIN GROWTH
(dollars in millions)
Midpoint of Full Year 2015 Outlook
Full Year 2014
Reported GAAP site rental gross margin
$
2,099

$
2,062

Straight line revenues and expenses, net
(39
)
(91
)
Other - Non-recurring
—

(5
)
Site Rental Gross Margin, as Adjusted(1)(3)
$
2,060

$
1,966

Cash adjustments:

 
FX and other
19

 
New tower acquisitions and builds(2)
(16
)
 
Organic Site Rental Gross Margin(1)(3)(4)
$
2,063

 
Year-Over-Year Gross Margin Growth
 
 
Reported GAAP site rental gross margin
1.8
%
 
Site Rental Gross Margin, as Adjusted
4.8
%
 
Organic Site Rental Gross Margin(6)
4.9
%
 
Year-Over-Year Incremental Margin
 
 
Reported GAAP site rental gross margin
53.7
%
 
Site Rental Gross Margin, as Adjusted
69.4
%
 
Organic Site Rental Gross Margin(7)
68.6
%
 

(1)
Includes amortization of prepaid rent.
(2)
The financial impact of new tower acquisitions and builds is excluded from organic site rental revenues until the one-year anniversary of the acquisition or build.
(3)
Includes Site Rental Revenues, as Adjusted, from the construction of new small cell nodes.
(4)
See definitions provided herein.
(5)
Calculated as the percentage change from Site Rental Revenues, as Adjusted, for the prior period when compared to Organic Site Rental Revenues for the current period.
(6)
Calculated as the percentage change from Site Rental Gross Margin, as Adjusted for the prior period when compared to Organic Site Rental Gross Margin in the current period.
(7)
Calculated as the change from Site Rental Gross Margin, as Adjusted for the prior period when compared to Organic Site Rental Gross Margin in the current period, divided by the change from Site Rental Revenues, as Adjusted in the prior period when compared to Organic Site Rental Revenues for the current period.

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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


CONSOLIDATED BALANCE SHEET (Unaudited)
(dollars in thousands, except share amounts)
March 31,
2015
 
December 31,
2014
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
240,153

 
$
175,620

Restricted cash
136,964

 
147,411

Receivables, net
292,565

 
329,229

Prepaid expenses
144,334

 
155,070

Deferred income tax assets
30,105

 
29,961

Other current assets
83,393

 
94,211

Total current assets
927,514

 
931,502

Deferred site rental receivables
1,292,630

 
1,260,614

Property and equipment, net
9,139,703

 
9,148,311

Goodwill
5,215,348

 
5,210,091

Other intangible assets, net
3,650,945

 
3,715,700

Deferred income tax assets
18,620

 
20,914

Long-term prepaid rent, deferred financing costs and other assets, net
860,717

 
856,144

Total assets
$
21,105,477

 
$
21,143,276

 
 
 
 
LIABILITIES AND EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
146,894

 
$
167,662

Accrued interest
68,697

 
66,943

Deferred revenues
327,270

 
348,338

Other accrued liabilities
163,096

 
202,657

Current maturities of debt and other obligations
115,998

 
113,335

Total current liabilities
821,955

 
898,935

Debt and other long-term obligations
11,954,093

 
11,807,526

Deferred income tax liabilities
38,152

 
39,889

Other long-term liabilities
1,732,484

 
1,659,698

Total liabilities
14,546,684

 
14,406,048

Commitments and contingencies

 

CCIC stockholders' equity:
 
 
 
Common stock, $.01 par value; 600,000,000 shares authorized; shares issued and outstanding: March 31, 2015—333,761,959 and December 31, 2014—333,856,632
3,339

 
3,339

4.50% Mandatory Convertible Preferred Stock, Series A, $.01 par value; 20,000,000 shares authorized; shares issued and outstanding: March 31, 2015 and December 31, 2014—9,775,000; aggregate liquidation value: March 31, 2015 and December 31, 2014—$977,500
98

 
98

Additional paid-in capital
9,503,335

 
9,512,396

Accumulated other comprehensive income (loss)
8,304

 
15,820

Dividends/distributions in excess of earnings
(2,978,356
)
 
(2,815,428
)
Total CCIC stockholders' equity
6,536,720

 
6,716,225

Noncontrolling interest
22,073

 
21,003

Total equity
6,558,793

 
6,737,228

Total liabilities and equity
$
21,105,477

 
$
21,143,276




10
Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
 
Three Months Ended March 31,
(dollars in thousands, except share and per share amounts)
2015
 
2014
Net revenues:
 
 
 
Site rental
$
767,606

 
$
747,162

Network services and other
173,395

 
128,788

Net revenues
941,001

 
875,950

Operating expenses:
 
 
 
Costs of operations (exclusive of depreciation, amortization and accretion):
 
 
 
Site rental
240,980

 
228,076

Network services and other
88,878

 
72,874

General and administrative
79,487

 
64,849

Asset write-down charges
8,623

 
2,733

Acquisition and integration costs
2,019

 
5,659

Depreciation, amortization and accretion
258,060

 
250,191

Total operating expenses
678,047

 
624,382

Operating income (loss)
262,954

 
251,568

Interest expense and amortization of deferred financing costs
(134,439
)
 
(146,400
)
Interest income
109

 
173

Other income (expense)
(230
)
 
(2,736
)
Income (loss) before income taxes
128,394

 
102,605

Benefit (provision) for income taxes
(3,282
)
 
188

Net income (loss)
125,112

 
102,793

Less: Net income (loss) attributable to the noncontrolling interest
2,325

 
1,296

Net income (loss) attributable to CCIC stockholders
122,787

 
101,497

Dividends on preferred stock
(10,997
)
 
(10,997
)
Net income (loss) attributable to CCIC common stockholders
$
111,790

 
$
90,500

 
 
 
 
Net income (loss) attributable to CCIC common stockholders, per common share:
 
 
 
Basic
$
0.34

 
$
0.27

Diluted
$
0.34

 
$
0.27

 
 
 
 
Weighted-average common shares outstanding (in thousands):
 
 
 
Basic
332,712

 
332,034

Diluted
333,485

 
333,045




11
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COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

SEGMENT OPERATING RESULTS
 
Three Months Ended March 31, 2015
(dollars in thousands)
CCUSA
 
CCAL
 
Consolidated Total
Net Revenues
 
 
 
 
 
Site rental
$
731,380

 
$
36,226

 
$
767,606

Services
169,091

 
4,304

 
173,395

Total net revenues
900,471

 
40,530

 
941,001

 
 
 
 
 
 
Operating expenses(1)
 
 
 
 
 
Site rental
232,213

 
8,767

 
240,980

Services
86,918

 
1,960

 
88,878

Total operating expenses
319,131

 
10,727

 
329,858

 
 
 
 
 
 
General and administrative
74,056

 
5,431

 
79,487

 
 
 
 
 
 
Adjusted EBITDA
$
529,300

 
$
24,954

 
$
554,254

FFO AND AFFO RECONCILIATIONS
 
Three Months Ended March 31,
(dollars in thousands, except share and per share amounts)
2015
 
2014
Net income
$
125,112

 
$
102,793

Real estate related depreciation, amortization and accretion
252,732

 
244,420

Asset write-down charges
8,623

 
2,733

Adjustment for noncontrolling interest(2)
(2,325
)
 
(1,296
)
Dividends on preferred stock
(10,997
)
 
(10,997
)
FFO(3)(4)
$
373,145

 
$
337,654

Weighted average common shares outstanding — diluted(5)
333,485

 
333,045

FFO per share(3)
$
1.12

 
$
1.01

 
 
 
 
FFO (from above)
$
373,145

 
$
337,654

Adjustments to increase (decrease) FFO:
 
 
 
Straight-line revenue
(38,016
)
 
(50,806
)
Straight-line expense
25,259

 
26,380

Stock-based compensation expense
17,424

 
12,937

Non-cash portion of tax provision
817

 
(2,332
)
Non-real estate related depreciation, amortization and accretion
5,328

 
5,770

Amortization of non-cash interest expense
11,736

 
20,882

Other (income) expense
230

 
2,736

Acquisition and integration costs
2,019

 
5,659

Adjustment for noncontrolling interest(2)
2,325

 
1,296

Capital improvement capital expenditures
(7,570
)
 
(3,860
)
Corporate capital expenditures
(9,371
)
 
(7,571
)
AFFO(3)(4)
$
383,326

 
$
348,744

Weighted average common shares outstanding — diluted(5)
333,485

 
333,045

AFFO per share(3)
$
1.15

 
$
1.05


(1)    Exclusive of depreciation, amortization and accretion.
(2)
Inclusive of the noncontrolling interest related to real estate related depreciation, amortization and accretion and asset write-downs.
(3)
See reconciliations and definitions provided herein. See also "Definitions of Non-GAAP Measures and Other Calculations" in the Appendix for a discussion of the definitions of FFO and AFFO.
(4)
FFO and AFFO are reduced by cash paid for preferred stock dividends.
(5)
The diluted weighted average common shares outstanding assumes no conversion for preferred stock in the share count.


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Crown Castle International Corp.
First Quarter 2015
COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Cash flows from operating activities:
 
 
 
Net income (loss)
$
125,112

 
$
102,793

Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
 
 
 
Depreciation, amortization and accretion
258,060

 
250,191

Amortization of deferred financing costs and other non-cash interest
11,736

 
20,881

Stock-based compensation expense
15,244

 
11,956

Asset write-down charges
8,623

 
2,733

Deferred income tax benefit (provision)
(800
)
 
(2,332
)
Other non-cash adjustments, net
(557
)
 
(774
)
Changes in assets and liabilities, excluding the effects of acquisitions:
 
 
 
Increase (decrease) in liabilities
16,969

 
23,278

Decrease (increase) in assets
26,407

 
(46,443
)
Net cash provided by (used for) operating activities
460,794

 
362,283

Cash flows from investing activities:
 
 
 
Payments for acquisition of businesses, net of cash acquired
(17,493
)
 
(62,228
)
Capital expenditures
(204,753
)
 
(142,943
)
Other investing activities, net
(514
)
 
952

Net cash provided by (used for) investing activities
(222,760
)
 
(204,219
)
Cash flows from financing activities:
 
 
 
Principal payments on debt and other long-term obligations
(31,497
)
 
(27,739
)
Purchases of capital stock
(29,372
)
 
(21,417
)
Borrowings under revolving credit facility
230,000

 
83,000

Payments under revolving credit facility
(65,000
)
 
(89,000
)
Payments for financing costs
(1,904
)
 
(5,854
)
Net decrease (increase) in restricted cash
10,214

 
14,743

Dividends/distributions paid on common stock
(273,685
)
 
(116,829
)
Dividends paid on preferred stock
(10,997
)
 
(11,363
)
Net cash provided by (used for) financing activities
(172,241
)
 
(174,459
)
Effect of exchange rate changes on cash
(1,260
)
 
(6,462
)
Net increase (decrease) in cash and cash equivalents
64,533

 
(22,857
)
Cash and cash equivalents at beginning of period
175,620

 
223,394

Cash and cash equivalents at end of period
$
240,153

 
$
200,537

Supplemental disclosure of cash flow information:
 
 
 
Interest paid
120,949

 
126,540

Income taxes paid
2,498

 
7,400



13
Crown Castle International Corp.
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COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


SITE RENTAL REVENUE GROWTH
 
Three Months Ended March 31,
(dollars in millions)
2015
 
2014
Reported GAAP site rental revenues
$
768

 
$
747

Site rental straight-line revenues
(38
)
 
(51
)
Other - Non-recurring
—

 
(5
)
Site Rental Revenues, as Adjusted(1)(3)
$
730

 
$
691

Cash adjustments:
 
 
 
FX and other
5

 
 
New tower acquisitions and builds(2)
(6
)
 
 
Organic Site Rental Revenues(1)(3)(4)
$
729

 
 
Year-Over-Year Revenue Growth
 
 
 
Reported GAAP site rental revenues
2.7
%
 
 
Site Rental Revenues, as Adjusted
5.5
%
 
 
Organic Site Rental Revenues(5)
5.4
%
 
 

ORGANIC SITE RENTAL REVENUE GROWTH
 
Three Months Ended March 31,
 
2015
New leasing activity
6.2%
Escalators
3.4%
Organic Site Rental Revenue growth, before non-renewals
9.6%
Non-renewals
(4.2)%
Organic Site Rental Revenue Growth(5)
5.4%

(1)
Includes amortization of prepaid rent; see the table "Summary of Prepaid Rent Activity" on page 16 for further details.
(2)
The financial impact of new tower acquisitions and builds is excluded from organic site rental revenues until the one-year anniversary of the acquisition or build.
(3)
Includes Site Rental Revenues, as Adjusted from the construction of new small cells.
(4)
See definitions provided herein.
(5)
Calculated as the percentage change from Site Rental Revenues, as Adjusted, for the prior period when compared to Organic Site Rental Revenues for the current period.

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First Quarter 2015
COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


SITE RENTAL GROSS MARGIN GROWTH
 
Three Months Ended March 31,
(dollars in millions)
2015
 
2014
Reported GAAP site rental gross margin
$
527

 
$
519

Straight line revenues and expenses, net
(13
)
 
(25
)
Other - Non-recurring
—

 
(5
)
Site rental gross margin, as Adjusted(1)(2)
$
514

 
$
489

Cash adjustments:
 
 
 
FX and other
(4
)
 
 
New tower acquisitions and builds(3)
(5
)
 
 
Organic Site Rental Gross Margin(1)(2)(4)
$
505

 
 
Year-Over-Year Gross Margin Growth
 
 
 
Reported GAAP site rental gross margin
1.5
%
 
 
Site Rental Gross Margin, as Adjusted
5.1
%
 
 
Organic Site Rental Gross Margin(5)
3.4
%
 
 
Year-Over-Year Incremental Margin
 
 
 
Reported GAAP site rental gross margin
37.3
%
 
 
Site Rental Gross Margin, as Adjusted
65.0
%
 
 
Organic Site Rental Gross Margin(6)
43.7
%
 
 

(1)
Includes amortization of prepaid rent.
(2)
Includes Site Rental Revenues, as Adjusted, from the construction of new small cell nodes.
(3)
The financial impact of new tower acquisitions and builds is excluded from organic site rental revenues until the one-year anniversary of the acquisition or build.
(4)
See definitions provided herein.
(5)
Calculated as the percentage change from Site Rental Gross Margin, as Adjusted for the prior period when compared to Organic Site Rental Gross Margin in the current period.
(6)
Calculated as the change from Site Rental Gross Margin, as Adjusted for the prior period when compared to Organic Site Rental Gross Margin in the current period, divided by the change from Site Rental Revenues, as Adjusted in the prior period when compared to Organic Site Rental Revenues for the current period.


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Crown Castle International Corp.
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COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


SUMMARY OF SITE RENTAL STRAIGHT-LINE REVENUES AND EXPENSES(1)
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Total site rental straight-line revenue
$
38,016

 
$
50,806

Total site rental straight-line expenses
25,259

 
26,380


SUMMARY OF PREPAID RENT ACTIVITY(2)
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Prepaid rent received
$
117,958

 
$
68,222

Amortization of prepaid rent
(34,470
)
 
(19,086
)

SUMMARY OF CAPITAL EXPENDITURES
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Discretionary:
 
 
 
Purchases of land interests
$
23,817

 
$
20,396

Wireless infrastructure construction and improvements
163,995

 
111,116

Sustaining
16,941

 
11,431

Total
$
204,753

 
$
142,943


(1)
In accordance with GAAP accounting, if payment terms call for fixed escalations, or rent free periods, the revenue is recognized on a straight-line basis over the fixed, non-cancelable term of the contract. Since the Company recognizes revenue on a straight-line basis, a portion of the site rental revenue in a given period represents cash collected or contractually collectible in other periods.
(2)
Reflects prepaid rent received from long-term tenant contracts and the amortization thereof for GAAP revenue recognition purposes.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


PROJECTED REVENUE FROM EXISTING CUSTOMER CONTRACTS(1)
 
Remaining nine months
Years Ended December 31,
(dollars in millions)
2015
2016
2017
2018
2019
Site rental revenue (GAAP)
$
2,261

$
3,016

$
3,039

$
3,061

$
3,086

Site rental straight-line revenue
(95
)
(55
)
14

68

123

Site Rental Revenues, as Adjusted
$
2,166

$
2,961

$
3,052

$
3,129

$
3,209


PROJECTED GROUND LEASE EXPENSE FROM EXISTING GROUND LEASES(2)
 
Remaining nine months
Years Ended December 31,
(as of March 31, 2015; dollars in millions)
2015
2016
2017
2018
2019
Ground lease expense (GAAP)
$
504

$
677

$
684

$
690

$
698

Site rental straight-line expense
(69
)
(81
)
(69
)
(58
)
(48
)
Ground Lease Expense, as Adjusted
$
435

$
596

$
615

$
632

$
650


ANNUALIZED CASH SITE RENTAL REVENUE AT TIME OF RENEWAL(3)
 
Remaining nine months
Years Ended December 31,
(as of March 31, 2015; dollars in millions)
2015
2016
2017
2018
2019
AT&T
$
15

$
46

$
21

$
40

$
36

Sprint(4)
17

41

39

36

42

T-Mobile
11

25

25

33

26

Verizon
9

13

17

18

18

Optus
1

—

2

—

—

VHA
2

6

9

2

—

Telstra
1

3

1

1

1

All Others Combined
34

40

30

32

30

Total
$
90

$
174

$
143

$
161

$
153


(1)
Based on existing contracts as of March 31, 2015. All contracts, except for Sprint contracts associated with the iDen network and contracts where non-renewal notices have been received, are assumed to renew for a new term at current term end date. CPI-linked customer contracts are assumed to escalate at 3% per annum. Assumes a US dollar to Australian dollar exchange rate of 0.76 US dollar to 1.0 Australian dollar.
(2)
Based on existing ground leases as of March 31, 2015. CPI-linked leases are assumed to escalate at 3% per annum. Assumes a US dollar to Australian dollar exchange rate of 0.76 US dollar to 1.0 Australian dollar.
(3)
Reflects lease renewals by year by customer; dollar amounts represent annualized cash site rental revenues from assumed renewals or extension as reflected in the table "Projected Revenue from Existing Customer Contracts."
(4)
Excludes Sprint leases associated with the iDen network, which are assumed to not renew as reflected in the table "Projected Revenue from Existing Customer Contracts."


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COMPANY
OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


ESTIMATED REDUCTION TO SITE RENTAL REVENUES FROM NON-RENEWALS FROM LEAP, METROPCS AND CLEARWIRE NETWORK DECOMMISSIONING(1)(2) (dollars in millions)
2015
2016
2017
2018
Thereafter
Total
$35-$45
$60-$70
$25-$35
$20-$30
$35-$45
$175-$225

TOTAL SITE RENTAL REVENUES FROM LEAP, METROPCS AND CLEARWIRE BY LEASE MATURITY(1)
(dollars in millions)
2015
2016
2017
2018
Thereafter
Total
Towers Leasing
$70
$70
$45
$30
$45
$260
Small Cells Leasing
$—
$5
$5
$5
$80
$95
Total
$70
$75
$50
$35
$125
$355

HISTORICAL ANNUAL NON-RENEWALS AS PERCENTAGE OF SITE RENTAL REVENUES, AS ADJUSTED
Years Ended December 31,
2014
2013
2012
2011
2010
2.6%
1.7%
2.2%
1.9%
2.0%



CUSTOMER OVERVIEW
(as of March 31, 2015)
Percentage of Q1 2015 LQA Site
Rental Revenues
Weighted Average Current
Term Remaining(3)
Long-Term Credit Rating
(S&P / Moody’s)
AT&T
30%
8
BBB+ / Baa1
T-Mobile
23%
7
BB
Sprint
19%
6
B+ / B1
Verizon
16%
8
BBB+ / Baa1
Optus Communications
2%
14
A+ / Aa3
VHA
1%
5
A- / Baa1(4)
Telstra
1%
15
A / A2
All Others Combined
8%
4
N/A
Total / Weighted Average
100%
7
 

(1)
Figures are approximate and based on run-rate site rental revenues as of March 31, 2015.
(2)
Depending on the eventual network deployment and decommissioning plans of AT&T, T-Mobile and Sprint, the impact and timing of such renewals may vary from Crown Castle's expectations.
(3)
Weighted by site rental revenue contributions; excludes renewals at the customers' option.
(4)
Vodafone Hutchison Australia ("VHA") is a joint venture between Vodafone Group Plc and Hutchison Telecommunications Australia, a subsidiary of Hutchison Whompoa; Vodafone Group Plc is rated A- and Baa1 and Hutchison Whompoa is rated A- and A3 by S&P and Moody's, respectively, as of March 31, 2015.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX

SUMMARY OF TOWER PORTFOLIO BY VINTAGE
(as of March 31, 2015; dollars in thousands)
 
YIELD(1)
NUMBER OF TENANTS PER TOWER


LQA SITE RENTAL REVENUE PER TOWER
LQA SITE RENTAL GROSS MARGIN PER TOWER
INVESTED CAPITAL PER TOWER(2)
NUMBER OF TOWERS

(1)
Yield is calculated as LQA site rental gross margin divided by invested capital.
(2)
Reflects gross total assets, including incremental capital invested by the Company since time of acquisition or construction completion. Inclusive of invested capital related to land at the tower site.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


PORTFOLIO OVERVIEW(1)
(as of March 31, 2015; dollars in thousands)
NUMBER OF TOWERS
TENANTS PER TOWER
LQA SITE RENTAL REVENUE PER TOWER


(1)
Includes towers and rooftops, excludes small cells and third-party land interests.


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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


DISTRIBUTION OF TOWER TENANCY (as of March 31, 2015)
PERCENTAGE OF TOWERS BY TENANTS PER TOWER(1)
U.S. PORTFOLIO
AUSTRALIA PORTFOLIO
Average: 2.2
Average: 2.4
 
 
GEOGRAPHIC TOWER DISTRIBUTION (as of March 31, 2015)(1)
PERCENTAGE OF TOWERS BY GEOGRAPHIC LOCATION
PERCENTAGE OF LQA SITE RENTAL REVENUE BY GEOGRAPHIC LOCATION

(1)
Includes towers and rooftops, excludes small cells and third-party land interests.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


U.S. GROUND INTEREST OVERVIEW
(as of March 31, 2015;
dollars in millions)
LQA Site Rental Revenue
Percentage of U.S. LQA Site Rental Revenue
LQA Site Rental Gross Margin
Percentage of U.S. LQA Site Rental Gross Margin
Number of U.S. Towers(1)
Percentage of U.S. Towers
Weighted Average Term Remaining (by years)(2)
Less than 10 years
$
338

13
%
$
194

11
%
5,657

14
%
 
10 to 20 years
533

20
%
293

16
%
9,974

25
%
 
Greater 20 years
1,072

40
%
702

38
%
15,692

40
%
 
Total leased
$
1,943

73
%
$
1,189

65
%
31,323

79
%
31

 
 
 
 
 
 
 
 
Owned
710

27
%
652

35
%
8,340

21
%
 
Total / Average
$
2,653

100
%
$
1,841

100
%
39,663

100
%
 


AUSTRALIA GROUND INTEREST OVERVIEW
(as of March 31, 2015;
dollars in millions)
LQA Site Rental Revenue
Percentage of Australia LQA Site Rental Revenue
LQA Site Rental
Gross Margin
Percentage of Australia LQA Site Rental Gross Margin
Number of Australia Towers(1)
Percentage of Australia Towers
Weighted Average Term Remaining (by years)(2)
Less than 10 years
$
42

30
%
$
31

27
%
524

29
%
 
10 to 20 years
48

34
%
38

34
%
633

36
%
 
Greater 20 years
36

26
%
30

27
%
474

27
%
 
Total leased
$
125

90
%
$
99

88
%
1,631

92
%
19

 
 
 
 
 
 
 
 
Owned
14

10
%
14

12
%
146

8
%
 
Total / Average
$
139

100
%
$
113

100
%
1,777

100
%
 

(1)
Includes towers and rooftops, excludes small cells and third-party land interests.
(2)
Includes renewal terms at the Company’s option; weighted by site rental gross margin.

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ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


U.S. GROUND INTEREST ACTIVITY
(dollars in millions)
Three Months Ended March 31, 2015
Ground Extensions Under Crown Castle Towers:
 
  Number of ground leases extended
459

  Average number of years extended
32

Percentage increase in consolidated cash ground lease expense due to extension activities(1)
0.2
%
 
 
Ground Purchases Under Crown Castle Towers:
 
  Number of ground leases purchased
115

  Land lease purchases (including capital expenditures, acquisitions and capital leases)
$
34

Percentage of consolidated site rental gross margin from towers residing on land purchased
<1%


AUSTRALIA GROUND INTEREST ACTIVITY
(dollars in millions)
Three Months Ended March 31, 2015
Ground Extensions Under Crown Castle Towers:
 
  Number of ground leases extended
15

  Average number of years extended
17

Percentage increase in consolidated cash ground lease expense due to extension activities(1)
Not Meaningful

 
 
Ground Purchases Under Crown Castle Towers:
 
  Number of ground leases purchased
—

  Land lease purchases (including capital expenditures, acquisitions and capital leases)
$
—

Percentage of consolidated site rental gross margin from towers residing on land purchased
Not Meaningful


SMALL CELL NETWORK OVERVIEW
Number of Nodes(3) 
(in thousands)
Miles of Fiber
(in thousands)
Percentage of LQA Site Rental Revenues
Weighted Average Current
Term Remaining for
Customer Contracts(2)
14
7
7%
8

(1)
Includes the impact from the amortization of lump sum payments.
(2)
Excludes renewal terms at customers’ option; weighted by site rental revenue.
(3)
Includes nodes currently in-process.



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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



CAPITALIZATION OVERVIEW
(dollars in millions)
Face Value as Reported 3/31/15
Fixed vs. Floating
Secured vs. Unsecured
Interest Rate(1)
Net Debt to LQA EBITDA(2)
Maturity
Cash
$
240

 
 
 
 
 
 
 
 
 
 
 
 
Senior Secured Tower Revenue Notes, Series 2010-2-2010-3(3)
1,600

Fixed
Secured
6.0%
 
Various(8)
Senior Secured Tower Revenue Notes, Series 2010-4-2010-6(3)
1,550

Fixed
Secured
4.5%
 
Various(8)
2012 Secured Notes(4)
1,500

Fixed
Secured
3.4%
 
2017/2023
Senior Secured Notes, Series 2009-1(5)
156

Fixed
Secured
7.5%
 
Various(8)
WCP Secured Wireless Site Contracts Revenue Notes, Series 2010-1(6)
254

Fixed
Secured
5.7%
 
2040
Subtotal
$
5,060

 
 
4.8%
2.3x
 
Revolving Credit Facility(7)
860

Floating
Secured
1.9%
 
2018/2019
Term Loan A
642

Floating
Secured
1.9%
 
2018/2019
Term Loan B
2,828

Floating
Secured
3.0%
 
2019/2021
Total CCOC Facility Debt
$
4,330

 
 
2.6%
2.0x
 
4.875% Senior Notes
850

Fixed
Unsecured
4.9%
 
2022
5.250% Senior Notes
1,650

Fixed
Unsecured
5.3%
 
2023
Capital Leases & Other Debt
181

Various
Various
Various
 
Various
Total HoldCo and other Debt
$
2,681

 
 
5.1%
1.2x
 
Total Net Debt
$
11,831

 
 
4.1%
5.3x
 
Preferred Stock, at liquidation value
978

 
 
 
 
 
Market Capitalization(9)
27,549

 
 
 
 
 
Firm Value(10)
$
40,358

 
 
 
 
 

(1)
Represents the weighted-average stated interest rate.
(2)
Represents the applicable amount of debt divided by LQA consolidated Adjusted EBITDA.
(3)
If the Senior Secured Tower Revenue Notes 2010-2, and 2010-3 and Senior Secured Tower Revenue Notes, 2010-4, 2010-5, and 2010-6 ("2010 Tower Revenue Notes") are not paid in full on or prior to 2015, 2017 and 2020, as applicable, then Excess Cash Flow (as defined in the indenture) of the issuers (of such notes) will be used to repay principal of the applicable series and class of the 2010 Tower Revenue Notes, and additional interest (of an additional approximately 5% per annum) will accrue on the respective 2010 Tower Revenue Notes. The Senior Secured Tower Revenue Notes, 2010-2, and 2010-3 consist of two series of notes with principal amounts of $350 million and $1.3 billion, having anticipated repayment dates in 2017 and 2020, respectively. The Senior Secured Tower Revenue Notes, 2010-4, 2010-5, and 2010-6 consist of three series of notes with principal amounts of $250 million, $300 million and $1.0 billion, having anticipated repayment dates in 2015, 2017 and 2020, respectively.
(4)
The 2012 Secured Notes consist of $500 million aggregate principal amount of 2.381% secured notes due 2017 and $1.0 billion aggregate principal amount of 3.849% secured notes due 2030.
(5)
The Senior Secured Notes, Series 2009-1 consist of $86 million of principal as of March 31, 2015 that amortizes through 2019, and $70 million of principal as of March 31, 2015 that amortizes during the period beginning in 2019 and ending in 2029.
(6)
The anticipated repayment date is 2015 for each class of the WCP Secured Wireless Site Contracts Revenue Notes, Series 2010-1 ("WCP Securitized Notes"). If the WCP Securitized Notes are not repaid in full by their anticipated repayment dates, the applicable interest rate increases by an additional approximately 5% per annum. If the WCP Securitized Notes are not repaid in full by their rapid amortization date of 2017, monthly principal payments commence using the excess cash flows of the issuers of the WCP Securitized Notes.
(7)
As of March 31, 2015, the undrawn availability under the $2.2 billion Revolving Credit Facility is $1.4 billion.
(8)
Notes are prepayable at par if voluntarily repaid six months or less prior to maturity; earlier prepayment may require additional consideration.
(9)
Market capitalization calculated based on $82.54 closing price and 333.8 million shares outstanding as of March 31, 2015.
(10)
Represents the sum of net debt, preferred stock (at liquidation value) and market capitalization.

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COMPANY OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



DEBT MATURITY OVERVIEW(1)


(1)
Where applicable, maturities reflect the Anticipated Repayment Date as defined in the respective debt agreement; excludes capital leases and other obligations; amounts presented at face value net of repurchases held at CCIC.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



LIQUIDITY OVERVIEW
(dollars in thousands)
March 31, 2015
Cash and cash equivalents(1)
$
240,153

Undrawn revolving credit facility availability(2)
1,370,000

Restricted cash
141,964

Debt and other long-term obligations
12,070,091

Total equity
6,558,793


(1)
Exclusive of restricted cash.
(2)
Availability at any point in time is subject to reaffirmation of the representations and warranties in, and there being no default under, our credit agreement governing our senior credit facilities ("2012 Credit Facility").

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


SUMMARY OF MAINTENANCE AND FINANCIAL COVENANTS
Debt
Borrower / Issuer
Covenant(1)
Covenant Level Requirement
 
As of March 31, 2015
Maintenance Financial Covenants(2)
2012 Credit Facility
CCOC
Total Net Leverage Ratio
≤ 5.50x
 
4.3x
2012 Credit Facility
CCOC
Consolidated Interest Coverage Ratio
≥ 2.50x
 
5.8x
 
 
 
 
 
 
Restrictive Negative Financial Covenants
 
 
 
 
Financial covenants restricting ability to make restricted payments, including dividends
4.875% Senior Notes
CCIC
Debt to Adjusted Consolidated Cash Flow Ratio
≤ 7.00x
 
5.5x
5.25% Senior Notes
CCIC
Debt to Adjusted Consolidated Cash Flow Ratio
≤ 7.00x
 
5.5x
2012 Credit Facility
CCOC
Total Net Leverage Ratio
≤ 5.50x
 
4.3x
 
 
 
 
 
 
Financial covenants restricting ability to incur additional debt
4.875% Senior Notes
CCIC
Debt to Adjusted Consolidated Cash Flow Ratio
≤ 7.00x
 
5.5x
5.25% Senior Notes
CCIC
Debt to Adjusted Consolidated Cash Flow Ratio
≤ 7.00x
 
5.5x
2012 Credit Facility
CCOC
Total Net Leverage Ratio
≤ 5.50x
(3) 
4.3x
2012 Credit Facility
CCOC
Holdings Leverage Ratio
≤ 7.00x
(4) 
5.5x
2012 Credit Facility
CCOC
Consolidated Interest Coverage Ratio
≥ 2.50x
 
5.8x
2012 Secured Notes
CC Holdings GS V LLC and Crown Castle GS III Corp.
Debt to Adjusted Consolidated Cash Flow Ratio
≤ 3.50x
 
3.9x
 
 
 
 
 
 
Financial covenants restricting ability to make investments
2012 Credit Facility
CCOC
Total Net Leverage Ratio
≤ 5.50x
 
4.3x

(1)
As defined in the respective debt agreement.
(2)
Failure to comply with the financial maintenance covenants would, absent a waiver, result in an event of default under the credit agreement governing our 2012 Credit Facility.
(3)
Applicable for debt issued at CCOC or its subsidiaries.
(4)
Applicable for debt issued at CCIC or its subsidiaries.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


SUMMARY OF MAINTENANCE AND FINANCIAL COVENANTS (CONTINUED)
Debt
Borrower / Issuer
Covenant(1)
Covenant Level Requirement
 
As of March 31, 2015
Restrictive Negative Financial Covenants
Financial covenants requiring excess cash flows to be deposited in a cash trap reserve account and not released
2010 Tower Revenue Notes
Crown Castle Towers LLC and its Subsidiaries
Debt Service Coverage Ratio
> 1.75x
(2) 
3.9x
WCP Securitized Notes
Certain WCP Subsidiaries
Debt Service Coverage Ratio
> 1.30x
(2) 
1.4x
2009 Securitized Notes
Pinnacle Towers Acquisition Holdings LLC and its Subsidiaries
Debt Service Coverage Ratio
> 1.30x
(2) 
4.7x
 
 
 
 
 
 
Financial covenants restricting ability of relevant issuer to issue additional notes under the applicable indenture
2010 Tower Revenue Notes
Crown Castle Towers LLC and its Subsidiaries
Debt Service Coverage Ratio
≥ 2.00x
(3) 
3.9x
WCP Securitized Notes
Certain WCP Subsidiaries
Debt Service Coverage Ratio
≥ 1.50x
(3) 
1.4x
2009 Securitized Notes
Pinnacle Towers Acquisition Holdings LLC and its Subsidiaries
Debt Service Coverage Ratio
≥ 2.34x
(3) 
4.7x

(1)
As defined in the respective debt agreement. In the indentures for the 2010 Tower Revenue Notes, WCP Securitized Notes, and the 2009 Securitized Notes, the defined term for Debt Service Coverage Ratio is "DSCR".
(2)
The 2010 Tower Revenue Notes, WCP Securitized Notes, and 2009 Securitized Notes also include the potential for amortization events, which could result in applying current and future cash flow to the prepayment of debt with applicable prepayment consideration. An amortization event occurs when the Debt Service Coverage Ratio falls below 1.45x, 1.15x or 1.15x, in each case as described under the indentures for the 2010 Tower Revenue Notes, WCP Securitized Notes, or 2009 Securitized Notes, respectively.
(3)
Rating Agency Confirmation (as defined in the respective debt agreement) is also required.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


INTEREST RATE SENSITIVITY(1)
 
Remaining nine months,
Years Ended December 31,
(as of March 31, 2015; dollars in millions)
2015
2016
2017
Fixed Rate Debt:
 
 
 
Face Value of Principal Outstanding(2)
$
7,560

$
7,551

$
7,291

Current Interest Payment Obligations(3)
277

368

367

Effect of 0.125% Change in Interest Rates(4)
<1

1

1

Floating Rate Debt:
 
 
 
Face Value of Principal Outstanding(2)
$
4,330

$
4,319

$
4,307

Current Interest Payment Obligations(5)
87

127

150

Effect of 0.125% Change in Interest Rates(6)
2

4

5


(1)
Excludes capital lease and other obligations.
(2)
Face value net of required amortizations; assumes no maturity or balloon principal payments; excludes capital leases.
(3)
Interest expense calculated based on current interest rates.
(4)
Interest expense calculated based on current interest rates until the sooner of the (1) stated maturity date or (2) the Anticipated Repayment Date, at which time the face value amount outstanding of such indebtedness is refinanced at current rates plus 12.5 bps.
(5)
Interest expense calculated based on current interest rates. Forward LIBOR assumptions are derived from the 1-month LIBOR forward curve as of March 31, 2015. Calculation takes into account any LIBOR floors in place and assumes no changes to future interest rate margin spread over LIBOR due to changes in the Borrower’s net leverage ratio.
(6)
Interest expense calculated based on current interest rates using forward LIBOR assumptions until the stated maturity date, at which time the face value amount outstanding of such indebtedness is refinanced at current rates plus 12.5 bps.



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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



DEFINITIONS
Non-GAAP Financial Measures and Other Calculations

This Supplement includes presentations of Adjusted EBITDA, Funds from Operations, Adjusted Funds from Operations, Organic Site Rental Revenues, Site Rental Revenues, as Adjusted, Organic Site Rental Gross Margin, and Site Rental Gross Margin, as Adjusted, and Ground Lease Expense, as Adjusted, which are non-GAAP financial measures. These non-GAAP financial measures are not intended as alternative measures of operating results or cash flow from operations (as determined in accordance with Generally Accepted Accounting Principles ("GAAP")). Each of the amounts included in the calculation of Adjusted EBITDA, FFO, AFFO, Organic Site Rental Revenues, Site Rental Revenues, as Adjusted, Organic Site Rental Gross Margin, and Site Rental Gross Margin, as Adjusted, and Ground Lease Expense, as Adjusted, are computed in accordance with GAAP, with the exception of: (1) sustaining capital expenditures, which is not defined under GAAP and (2) our adjustment to the income tax provision in calculations of AFFO for periods prior to our REIT conversion.
Our measures of Adjusted EBITDA, FFO, AFFO, Organic Site Rental Revenues, Site Rental Revenues, as Adjusted, Organic Site Rental Gross Margin, and Site Rental Gross Margin, as Adjusted, and Ground Lease Expense, as Adjusted, may not be comparable to similarly titled measures of other companies, including other companies in the tower sector or those reported by other REITs. Our FFO and AFFO may not be comparable to those reported in accordance with National Association of Real Estate Investment Trusts, including with respect to the impact of income taxes for periods prior to our REIT conversion.
Adjusted EBITDA, FFO, AFFO, Organic Site Rental Revenues, Site Rental Revenues, as Adjusted, Organic Site Rental Gross Margin, and Site Rental Gross Margin, as Adjusted, and Ground Lease Expense, as Adjusted, 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.
Adjusted EBITDA. 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, amortization of prepaid lease purchase price adjustments, interest expense and amortization of deferred financing costs, gains (losses) on retirement of long-term obligations, net gain (loss) on interest rate swaps, impairment of available-for-sale securities, interest income, 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.
Funds from Operations ("FFO"). Crown Castle defines Funds from Operations as net income plus real estate related depreciation, amortization and accretion and asset write-down charges, less non controlling interest and cash paid for preferred stock dividends, and is a measure of funds from operations attributable to CCIC common stockholders.
FFO per share. Crown Castle defines FFO per share as FFO divided by the diluted weighted average common shares outstanding.
Adjusted Funds from Operations ("AFFO"). Crown Castle defines Adjusted Funds from Operations as FFO before straight-line revenue, straight-line expense, stock-based compensation expense, non-cash portion of tax provision, non-real estate related depreciation, amortization and accretion, amortization of non-cash interest expense, other (income) expense, gains (loss) on retirement of long-term obligations, net gain (loss) on interest rate swaps, acquisition and integration costs, and adjustments for noncontrolling interests, and less capital improvement capital expenditures and corporate capital expenditures.
AFFO per share. Crown Castle defines AFFO per share as AFFO divided by diluted weighted average common shares outstanding.
AFFO payout ratio. Dividends per common share divided by AFFO per share.
Site Rental Revenues, as Adjusted. Crown Castle defines Site Rental Revenues, as Adjusted, as site rental revenues, as reported, less straight-line revenues.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
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APPENDIX



DEFINITIONS (continued)
Organic Site Rental Revenues. Crown Castle defines Organic Site Rental Revenues as site rental revenues, as reported, less straight-line revenues, the impact of tower acquisitions and construction, foreign currency adjustments and certain non recurring items.
Site Rental Gross Margins, as Adjusted. Crown Castle defines Site Rental Gross Margins, as Adjusted, as site rental gross margin as reported less straight-line revenues and straight-line expenses.
Organic Site Rental Gross Margins. Crown Castle defines Organic Site Rental Gross Margins as site rental gross margins, as reported less straight-line revenues, straight-line expenses, the impact of tower acquisitions and construction, foreign currency adjustments and certain non recurring items.
Ground Lease Expense, as Adjusted. Crown Castle defines Ground Lease Expense, as Adjusted as ground lease expense, as reported, less straight line ground lease expense.
Sustaining capital expenditures. Crown Castle defines sustaining capital expenditures as either (1) corporate related capital improvements, such as buildings, information technology equipment and office equipment or (2) capital improvements to tower sites that enable our customers' ongoing quiet enjoyment of the tower.
The tables set forth below reconcile non-GAAP financial measures to comparable GAAP financial measures and provide certain other calculations. The components in these tables may not sum to the total due to rounding.

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FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



Adjusted EBITDA for the three months ended March 31, 2015 and 2014 is computed as follows:
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Net income (loss)
$
125,112

 
$
102,793

Adjustments to increase (decrease) net income (loss):
 
 
 
Asset write-down charges
8,623

 
2,733

Acquisition and integration costs
2,019

 
5,659

Depreciation, amortization and accretion
258,060

 
250,191

Amortization of prepaid lease purchase price adjustments
5,174

 
3,895

Interest expense and amortization of deferred financing costs(1)
134,439

 
146,400

Interest income
(109
)
 
(173
)
Other income (expense)
230

 
2,736

Benefit (provision) for income taxes
3,282

 
(188
)
Stock-based compensation expense
17,424

 
12,937

Adjusted EBITDA(2)
$
554,254

 
$
526,983


Adjusted EBITDA for the three months ended March 31, 2015 is computed as follows:
 
Three Months Ended March 31, 2015
(dollars in thousands)
CCUSA
 
CCAL
 
Eliminations
 
Consolidated
Total
Net income (loss)
$
114,785

 
$
10,327

 
$
—

 
$
125,112

Adjustments to increase (decrease) net income (loss):
 
 
 
 
 
 
 
Asset write-down charges
8,555

 
68

 
—

 
8,623

Acquisition and integration costs
2,016

 
3

 
—

 
2,019

Depreciation, amortization and accretion
251,806

 
6,254

 
—

 
258,060

Amortization of prepaid lease purchase price adjustments
5,174

 
—

 
—

 
5,174

Interest expense and amortization of deferred financing costs(1)
134,439

 
3,051

 
(3,051
)
 
134,439

Interest income
(56
)
 
(53
)
 
—

 
(109
)
Other income (expense)
(2,827
)
 
6

 
3,051

 
230

Benefit (provision) for income taxes
(1,434
)
 
4,716

 
—

 
3,282

Stock-based compensation expense
16,842

 
582

 
—

 
17,424

Adjusted EBITDA(2)
$
529,300

 
$
24,954

 
$
—

 
$
554,254


(1)
See the reconciliation of "components of interest expense and amortization of deferred financing costs" herein.
(2)
The above reconciliation excludes line items included in our Adjusted EBITDA definition which are not applicable for the periods shown.

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ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX


Adjusted EBITDA for the quarter ending June 30, 2015 and the year ending December 31, 2015 is forecasted as follows:
 
Q2 2015
 
Full Year 2015
(dollars in millions)
Outlook
 
Outlook
Net income (loss)
$92 to $125
 
$419 to $498
Adjustments to increase (decrease) net income (loss):
 
 
 
Asset write-down charges
$4 to $6
 
$19 to $29
Acquisition and integration costs
$0 to $3
 
$4 to $4
Depreciation, amortization and accretion
$256 to $261
 
$1,021 to $1,041
Amortization of prepaid lease purchase price adjustments
$4 to $6
 
$19 to $21
Interest expense and amortization of deferred financing costs(1)
$133 to $138
 
$531 to $546
Interest income
$(2) to $0
 
$(3) to $(1)
Other income (expense)
$(1) to $2
 
$1 to $3
Benefit (provision) for income taxes
$1 to $5
 
$4 to $12
Stock-based compensation expense
$16 to $18
 
$66 to $71
Adjusted EBITDA(2)
$531 to $536
 
$2,145 to $2,160

The components of interest expense and amortization of deferred financing costs for the quarters ending March 31, 2015 and 2014 are as follows:
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Interest expense on debt obligations
$
122,703


$
125,519

Amortization of deferred financing costs
5,619

 
5,641

Amortization of adjustments on long-term debt
(881
)
 
(955
)
Amortization of interest rate swaps(3)
7,491

 
16,182

Other, net
(493
)
 
13

Interest expense and amortization of deferred financing costs
$
134,439

 
$
146,400


The components of interest expense and amortization of deferred financing costs for the quarter ending June 30, 2015 and the year ending December 31, 2015 are forecasted as follows:
 
Q2 2015
 
Full Year 2015
(dollars in millions)
Outlook
 
Outlook
Interest expense on debt obligations
$123 to $125
 
$498 to $508
Amortization of deferred financing costs
$5 to $7
 
$21 to $23
Amortization of adjustments on long-term debt
$(1) to $0
 
$(4) to $(2)
Amortization of interest rate swaps(3)
$6 to $8
 
$16 to $21
Other, net
$0 to $0
 
$(3) to $(1)
Interest expense and amortization of deferred financing costs
$133 to $138
 
$531 to $546

(1)
See the reconciliation of “components of interest expense and amortization of deferred financing costs” herein.
(2)
The above reconciliation excludes line items included in our Adjusted EBITDA definition which are not applicable for the periods shown.
(3)
Relates to the amortization of interest rate swaps; the swaps were cash settled in prior periods.



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ASSET PORTFOLIO OVERVIEW
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APPENDIX



FFO and AFFO for the three months ended March 31, 2015 and 2014 are computed as follows:
 
Three Months Ended March 31,
(dollars in thousands, except share and per share amounts)
2015
 
2014
Net income
$
125,112

 
$
102,793

Real estate related depreciation, amortization and accretion
252,732

 
244,420

Asset write-down charges
8,623

 
2,733

Adjustment for noncontrolling interest(1)
(2,325
)
 
(1,296
)
Dividends on preferred stock
(10,997
)
 
(10,997
)
FFO(3)
$
373,145

 
$
337,654

 
 
 
 
FFO (from above)
$
373,145

 
$
337,654

Adjustments to increase (decrease) FFO:
 
 
 
Straight-line revenue
(38,016
)
 
(50,806
)
Straight-line expense
25,259

 
26,380

Stock-based compensation expense
17,424

 
12,937

Non-cash portion of tax provision
817

 
(2,332
)
Non-real estate related depreciation, amortization and accretion
5,328

 
5,770

Amortization of non-cash interest expense
11,736

 
20,882

Other (income) expense
230

 
2,736

Acquisition and integration costs
2,019

 
5,659

Adjustment for noncontrolling interest(1)
2,325

 
1,296

Capital improvement capital expenditures
(7,570
)
 
(3,860
)
Corporate capital expenditures
(9,371
)
 
(7,571
)
AFFO(2)(3)
$
383,326

 
$
348,744

Weighted average common shares outstanding — diluted(4)
333,485

 
333,045

AFFO per share(2)
$
1.15

 
$
1.05


(1)
Inclusive of the noncontrolling interest related to real estate related depreciation, amortization and accretion and asset write-downs.
(2)
See definitions herein. See also “Definitions of Non-GAAP Financial Measures and Other Calculations” herein for a discussion of our definitions of FFO and AFFO.
(3)
FFO and AFFO are reduced by cash paid for preferred stock dividends.
(4)
The diluted weighted average common shares outstanding assumes no conversion for preferred stock in the share count.



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ASSET PORTFOLIO OVERVIEW
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APPENDIX


FFO and AFFO for the years ended December 31, 2014, 2013, 2012, 2011 and 2010 are computed as follows:
 
Years Ended December 31,
(in thousands of dollars, except share and per share amounts)
2014
 
2013
 
2012
 
2011
 
2010
Net income
$
398,774

 
$
93,901

 
$
200,888

 
$
171,460

 
$
(311,259
)
Real estate related depreciation, amortization and accretion
992,643

 
761,070

 
601,372

 
531,869

 
522,514

Asset write-down charges
15,040

 
14,863

 
15,548

 
22,285

 
13,687

Adjustment for noncontrolling interest(1)
(8,261
)
 
(3,790
)
 
(12,304
)
 
(383
)
 
319

Dividends on preferred stock
(43,988
)
 
—

 
(2,481
)
 
(19,487
)
 
(19,879
)
FFO(3)(4)
$
1,354,208

 
$
866,043

 
$
803,023

 
$
705,744

 
$
205,381

 
 
 
 
 
 
 
 
 
 
FFO (from above)
$
1,354,208

 
$
866,043

 
$
803,023

 
$
705,744

 
$
205,381

Adjustments to increase (decrease) FFO:
 
 
 
 
 
 
 
 
 
Straight-line revenue
(196,598
)
 
(218,631
)
 
(251,327
)
 
(199,969
)
 
(161,716
)
Straight-line expense
105,376

 
80,953

 
54,069

 
39,025

 
38,759

Stock-based compensation expense
60,164

 
41,788

 
47,382

 
35,991

 
39,965

Non-cash portion of tax provision(2)
(20,359
)
 
191,729

 
(106,742
)
 
4,970

 
(29,033
)
Non-real estate related depreciation, amortization and accretion
20,421

 
13,145

 
21,220

 
21,082

 
18,257

Amortization of non-cash interest expense
80,854

 
99,244

 
109,337

 
102,944

 
85,454

Other (income) expense
(11,862
)
 
3,872

 
5,392

 
5,577

 
603

Gains (losses) on retirement of long-term obligations
44,629

 
37,127

 
131,974

 
—

 
138,367

Net gain (loss) on interest rate swaps
—

 
—

 
—

 
—

 
286,435

Acquisition and integration costs
35,042

 
26,005

 
18,298

 
3,310

 
2,102

Adjustment for noncontrolling interest(1)
8,261

 
3,790

 
12,304

 
383

 
(319
)
Capital improvement capital expenditures
(32,227
)
 
(19,312
)
 
(21,647
)
 
(13,965
)
 
(14,795
)
Corporate capital expenditures
(51,772
)
 
(28,409
)
 
(15,459
)
 
(9,429
)
 
(9,531
)
AFFO(3)(4)
$
1,396,139

 
$
1,097,347

 
$
807,823

 
$
695,661

 
$
599,931

Weighted average common shares outstanding — diluted(5)
333,265

 
299,293

 
291,270

 
285,947

 
286,764

AFFO per share(3)
$
4.19

 
$
3.67

 
$
2.77

 
$
2.43

 
$
2.09


(1)
Inclusive of the noncontrolling interest related to real estate related depreciation, amortization and accretion and asset write-downs.
(2)
Adjusts the income tax provision to reflect our estimate of the cash taxes paid had we been a REIT for all periods presented, and is primarily comprised of foreign taxes. As a result income tax expense (benefit) is lower by the amount of the adjustment.
(3)
See reconciliations and definitions provided herein. See also "Definitions of Non-GAAP Measures and Other Calculations" herein for a discussion of our definitions of FFO and AFFO.
(4)
FFO and AFFO are reduced by cash paid for preferred stock dividends.
(5)
The diluted weighted average common shares outstanding assumes no conversion for preferred stock in the share count.

35
Crown Castle International Corp.
First Quarter 2015
COMPANY OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



FFO and AFFO for the three months ended June 30, 2014 and 2013 are computed as follows:
 
Three Months Ended June 30,
(in thousands of dollars, except share and per share amounts)
2014
 
2013
Net income
$
35,357

 
$
53,376

Real estate related depreciation, amortization and accretion
249,484

 
188,039

Asset write-down charges
3,136

 
3,097

Adjustment for noncontrolling interest(1)
(1,348
)
 
(1,017
)
Dividends on preferred stock
(10,997
)
 
—

FFO(3)(4)
$
275,632

 
$
243,496

 
 
 
 
FFO (from above)
$
275,632

 
$
243,496

Adjustments to increase (decrease) FFO:
 
 
 
Straight-line revenue
(52,134
)
 
(56,919
)
Straight-line expense
27,416

 
20,572

Stock-based compensation expense
18,212

 
9,608

Non-cash portion of tax provision(2)
(2,553
)
 
34,747

Non-real estate related depreciation, amortization and accretion
4,751

 
2,612

Amortization of non-cash interest expense
20,604

 
20,551

Other (income) expense
6,063

 
(507
)
Gains (losses) on retirement of long-term obligations
44,629

 
577

Acquisition and integration costs
19,197

 
7,215

Adjustment for noncontrolling interest(1)
1,348

 
1,017

Capital improvement capital expenditures
(4,469
)
 
(2,399
)
Corporate capital expenditures
(8,171
)
 
(7,694
)
AFFO(3)(4)
$
350,526

 
$
272,877

Weighted average common shares outstanding — diluted(5)
333,081

 
292,706

AFFO per share(3)
$
1.05

 
$
0.93


(1)
Inclusive of the noncontrolling interest related to real estate related depreciation, amortization and accretion and asset write-downs.
(2)
Adjusts the income tax provision to reflect our estimate of the cash taxes paid had we been a REIT for all periods presented, and is primarily comprised of foreign taxes. As a result income tax expense (benefit) is lower by the amount of the adjustment.
(3)
See reconciliations and definitions provided herein. See also "Definitions of Non-GAAP Measures and Other Calculations" herein for a discussion of our definitions of FFO and AFFO.
(4)
FFO and AFFO are reduced by cash paid for preferred stock dividends.
(5)
The diluted weighted average common shares outstanding assumes no conversion for preferred stock in the share count.

36
Crown Castle International Corp.
First Quarter 2015
COMPANY OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



FFO and AFFO for the quarter ending June 30, 2015 and the year ending December 31, 2015 are forecasted as follows:
 
Q2 2015
 
Full Year 2015
(in millions of dollars, except share and per share amounts)
Outlook
 
Outlook
Net income
$92 to $125
 
$419 to $498
Real estate related depreciation, amortization and accretion
$252 to $255
 
$1,003 to $1,018
Asset write-down charges
$4 to $6
 
$19 to $29
Adjustment for noncontrolling interest(1)
$(3) to $1
 
$(13) to $(6)
Dividends on preferred stock
$(11) to $(11)
 
$(44) to $(44)
FFO(3)(4)
$352 to $357
 
$1,439 to $1,454
 
 
 
 
FFO (from above)
$352 to $357
 
$1,439 to $1,454
Adjustments to increase (decrease) FFO:
 
 
 
Straight-line revenue
$(40) to $(35)
 
$(142) to $(127)
Straight-line expense
$23 to $28
 
$88 to $103
Stock-based compensation expense
$16 to $18
 
$66 to $71
Non-cash portion of tax provision
$(9) to $(4)
 
$(21) to $(6)
Non-real estate related depreciation, amortization and accretion
$4 to $6
 
$18 to $23
Amortization of non-cash interest expense
$10 to $15
 
$30 to $41
Other (income) expense
$(1) to $2
 
$1 to $3
Acquisition and integration costs
$0 to $3
 
$4 to $4
Adjustment for noncontrolling interest(1)
$3 to $(1)
 
$13 to $6
Capital improvement capital expenditures
$(12) to $(10)
 
$(41) to $(36)
Corporate capital expenditures
$(12) to $(10)
 
$(40) to $(35)
AFFO(3)(4)
$348 to $353
 
$1,450 to $1,465
Weighted-average common shares outstanding—diluted(2)(5)
333.9
 
333.9
AFFO per share(3)
$1.04 to $1.06
 
$4.34 to $4.39

(1)
Inclusive of the noncontrolling interest related to real estate related depreciation, amortization and accretion and asset write-downs.
(2)
Based on 333.9 million diluted shares outstanding as of March 31, 2015.
(3)
See definitions herein. See also “Definitions of Non-GAAP Financial Measures and Other Calculations” herein for a discussion of our definitions of FFO and AFFO.
(4)
FFO and AFFO are reduced by cash paid for preferred stock dividends.
(5)
The diluted weighted average common shares outstanding assumes no conversion for preferred stock in the share count.





37
Crown Castle International Corp.
First Quarter 2015
COMPANY OVERVIEW
FINANCIALS & METRICS
ASSET PORTFOLIO OVERVIEW
CAPITALIZATION OVERVIEW
APPENDIX



Net Debt to Last Quarter Annualized Adjusted EBITDA calculation:
 
Three Months Ended March 31,
(dollars in millions)
2015
2014
Total face value of debt
$
12,071.3

$
11,618.3

Ending cash and cash equivalents
240.2

199.9

Total Net Debt
$
11,831.1

$
11,418.4

 
 
 
Adjusted EBITDA for the three months ended March 31,
$
554.3

$
527.0

Last quarter annualized Adjusted EBITDA
2,217.0

2,108.0

Net Debt to Last Quarter Annualized Adjusted EBITDA
5.3
x
5.4
x

Cash Interest Coverage Ratio Calculation:
 
Three Months Ended March 31,
(dollars in thousands)
2015
 
2014
Adjusted EBITDA
$
554,254

 
$
526,983

Interest expense on debt obligations
122,703

 
125,519

Interest Coverage Ratio
4.5
x
 
4.2
x


AFFO Payout Ratio Calculation:
 
Three Months Ended March 31,
(per share)
2015
Dividend per share
$
0.82

AFFO per share
$
1.15

AFFO Payout Ratio
71
%


38

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