Crown Castle International Adjusts Second Quarter 2004 Site Rental Revenue and Cost of Operations
HOUSTON, Jul 29, 2004 /PRNewswire-FirstCall via COMTEX/ -- Crown Castle International Corp. (NYSE: CCI) adjusted its previously reported site rental revenue upward by $1.2 million to $131.4 million and site rental cost of operations upward by $1.2 million to $41.8 million for the second quarter ended June 30, 2004. The adjustments correct a computational error Crown Castle discovered in the consolidating entries of its US operations.
The revised site rental revenue and site rental cost of operations for the second quarter of 2004 follows:
Consolidated site rental revenue for the second quarter of 2004 increased 12.7 percent to $131.4 million, up $14.8 million from $116.6 million for the same period in the prior year. Consolidated site rental cost of operations for the second quarter of 2004 was $41.8 million compared to $40.0 million for the same period in the prior year. US site rental revenue for the second quarter of 2004 increased $10.3 million, or 9.3 percent, to $120.8 million, from $110.5 million for the same period in 2003. US site rental cost of operations for the second quarter of 2004 was $38.3 million compared to $37.5 million for the same period in 2003.
The adjustments have no effect on any other previously reported second quarter 2004 numbers, including Adjusted EBITDA, net loss, net loss per share, cash provided by operating activities or Free Cash Flow, which is defined as cash from operating activities less capital expenditures. Crown Castle's outlook for third quarter 2004 and full years 2004 and 2005 remains unchanged from the July 28, 2004 press release.
Pro forma for the previously announced sale of Crown Castle UK, Crown Castle International Corp. engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers and rooftops. Crown Castle offers significant wireless communications coverage to 68 of the top 100 United States markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 10,600 and over 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit: http://www.crowncastle.com .
Non-GAAP Financial Measures:
This press release includes presentations of Adjusted EBITDA, which is a non-GAAP financial measure. Crown Castle defines Free Cash Flow as net cash provided by operating activities less capital expenditures (both amounts from the Consolidated Statement of Cash Flows). Crown Castle defines Adjusted EBITDA as net loss plus cumulative effect of change in accounting principle, income (loss) from discontinued operations, minority interests, provision for income taxes, interest expense, amortization of deferred financing costs and dividends on preferred stock, interest and other income (expense), depreciation, amortization and accretion, non-cash general and administrative compensation charges, asset write-down charges and restructuring charges (credits). 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). Further, our measure of Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Adjusted EBITDA is presented as additional information because management believes it is a useful indicator of the current financial performance of our core businesses. In addition, Adjusted EBITDA is the measure of current financial performance generally used in our debt covenant calculations. The tables set forth below reconcile Adjusted EBITDA to comparable GAAP financial measures. Our results under GAAP are set forth in the financial statements following this press release.
Adjusted EBITDA is computed as follows: (in thousands of dollars) Three Months Ended June 30, 2004 2003 Net loss $(39,594) $(80,831) Income from discontinued operations, net of tax (16,455) (2,099) Minority interests 1,463 730 Provision for income taxes 184 127 Interest expense and amortization of deferred financing costs 56,568 63,809 Interest and other income (expense) 1,349 8,271 Depreciation, amortization and accretion 61,119 60,763 Non-cash general and administrative compensation charges 6,203 5,834 Asset write-down charges 1,868 1,380 Restructuring charges (credits) --- 2,349 Adjusted EBITDA $72,705 $60,333 Adjusted EBITDA is computed as follows: (in thousands of dollars) Six Months Ended June 30, 2004 2003 Net loss $(104,561) $(149,847) Cumulative effect of change in accounting principle --- 551 Income from discontinued operations, net of tax (30,999) (7,541) Minority interests 2,809 1,287 Provision for income taxes 337 243 Interest expense and amortization of deferred financing costs 113,890 127,520 Interest and other income (expense) 26,376 10,834 Depreciation, amortization and accretion 122,344 122,226 Non-cash general and administrative compensation charges 8,418 7,728 Asset write-down charges 3,816 1,380 Restructuring charges (credits) (33) 2,349 Adjusted EBITDA $142,397 $116,730 Crown Castle International Corp. Condensed Consolidated Statement of Operations And Other Financial Data (in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Net revenues: Site rental $ 131,363 $ 116,646 $ 260,332 $ 230,481 Network services and other 18,513 19,629 33,216 36,548 Total net revenues 149,876 136,275 293,548 267,029 Costs of operations: Site rental 41,843 39,985 82,778 80,593 Network services and other 12,272 12,819 23,268 24,430 Total costs of operations 54,115 52,804 106,046 105,023 General and administrative 22,685 22,220 44,295 42,738 Corporate development 371 918 810 2,538 Restructuring charges (credits) --- 2,349 (33) 2,349 Asset write-down charges 1,868 1,380 3,816 1,380 Non-cash general and administrative compensation charges 6,203 5,834 8,418 7,728 Depreciation, amortization and accretion 61,119 60,763 122,344 122,226 Operating income (loss) 3,515 (9,993) 7,852 (16,953) Interest and other income (expense) (1,349) (8,271) (26,376) (10,834) Interest expense and amortization of deferred financing costs (56,568) (63,809) (113,890) (127,520) Loss from continuing operations before income taxes, minority interests and cumulative effect of change in accounting principle (54,402) (82,073) (132,414) (155,307) Provision for income taxes (184) (127) (337) (243) Minority interests (1,463) (730) (2,809) (1,287) Loss from continuing operations before cumulative effect of change in accounting principle (56,049) (82,930) (135,560) (156,837) Income from discontinued operations, net of tax 16,455 2,099 30,999 7,541 Loss before cumulative effect of change in accounting principle (39,594) (80,831) (104,561) (149,296) Cumulative effect of change in accounting principle for asset retirement obligations --- --- --- (551) Net loss (39,594) (80,831) (104,561) (149,847) Dividends on preferred stock, net of gains (losses) on purchases of preferred stock (9,332) (20,081) (19,028) (34,452) Net loss after deduction of dividends on preferred stock, net of gains (losses) on purchases of preferred stock $ (48,926) $(100,912) $(123,589) $(184,299) Per common share - basic and diluted: Loss from continuing operations before cumulative effect of change in accounting principle $ (0.29) $ (0.48) $ (0.70) $ (0.88) Income from discontinued operations 0.07 0.01 0.14 0.03 Cumulative effect of change in accounting principle --- --- --- --- Net loss $ (0.22) $ (0.47) $ (0.56) $ (0.85) Common shares outstanding - basic and diluted 221,853 215,969 220,574 216,464 Adjusted EBITDA (before restructuring and asset write-down charges): Site rental $ 82,197 $ 69,933 $ 163,609 $ 136,881 Network services and other (before corporate development expenses) (9,121) (8,682) (20,402) (17,613) Adjusted EBITDA before corporate development expenses 73,076 61,251 143,207 119,268 Corporate development (371) (918) (810) (2,538) Total Adjusted EBITDA $ 72,705 $ 60,333 $ 142,397 $ 116,730 CROWN CASTLE INTERNATIONAL CORP. Summary Fact Sheet (in $ thousands) Quarter Ended 9/30/03 Quarter Ended 12/31/03 US AUS CCIC US AUS CCIC Revenues Site Rental 113,387 6,740 120,127 117,686 7,860 125,546 Services 16,361 1,035 17,396 17,561 811 18,372 Total Revenues 129,748 7,775 137,523 135,247 8,671 143,918 Operating Expenses Site Rental 37,298 2,764 40,062 39,353 3,167 42,520 Services 9,668 510 10,178 11,604 534 12,138 Total Operating Expenses 46,966 3,274 50,240 50,957 3,701 54,658 General & Administrative Site Rental 4,319 2,037 6,356 4,889 2,451 7,340 Services 15,066 --- 15,066 15,561 --- 15,561 Total General & Administrative 19,385 2,037 21,422 20,450 2,451 22,901 Operating Cash Flow Site Rental 71,770 1,939 73,709 73,444 2,242 75,686 Services (8,373) 525 (7,848) (9,604) 277 (9,327) Total Pre-Overhead Cash Flow 63,397 2,464 65,861 63,840 2,519 66,359 Corporate Overhead 1,039 --- 1,039 1,987 --- 1,987 Adjusted EBITDA 62,358 2,464 64,822 61,853 2,519 64,372 Quarter Ended 9/30/03 Quarter Ended 12/31/03 US AUS CCIC US AUS CCIC Gross Margins: Site Rental 67% 59% 67% 67% 60% 66% Services 41% 51% 41% 34% 34% 34% Operating Cash Flow Margins Site Rental 63% 29% 61% 62% 29% 60% Services -51% 51% -45% -55% 34% -51% Adjusted EBITDA Margin 48% 32% 47% 46% 29% 45% Quarter Ended 3/31/04 Quarter Ended 6/30/04 US AUS CCIC US AUS CCIC Revenues Site Rental 120,695 8,274 128,969 120,827 10,536 131,363 Services 13,499 1,204 14,703 17,390 1,123 18,513 Total Revenues 134,194 9,478 143,672 138,217 11,659 149,876 Operating Expenses Site Rental 37,233 3,702 40,935 38,332 3,511 41,843 Services 10,268 728 10,996 11,591 681 12,272 Total Operating Expenses 47,501 4,430 51,931 49,923 4,192 54,115 General & Administrative Site Rental 4,242 2,380 6,622 4,693 2,630 7,323 Services 14,988 --- 14,988 15,362 --- 15,362 Total General & Administrative 19,230 2,380 21,610 20,055 2,630 22,685 Operating Cash Flow Site Rental 79,220 2,192 81,412 77,802 4,395 82,197 Services (11,757) 476 (11,281) (9,563) 442 (9,121) Total Pre-Overhead Cash Flow 67,463 2,668 70,131 68,239 4,837 73,076 Corporate Overhead 439 --- 439 371 --- 371 Adjusted EBITDA 67,024 2,668 69,692 67,868 4,837 72,705 Quarter Ended 3/31/04 Quarter Ended 6/30/04 US AUS CCIC US AUS CCIC Gross Margins: Site Rental 69% 55% 68% 68% 67% 68% Services 24% 40% 25% 33% 39% 34% Operating Cash Flow Margins Site Rental 66% 26% 63% 64% 42% 63% Services -87% 40% -77% -55% 39% -49% Adjusted EBITDA Margin 50% 28% 49% 49% 41% 49% Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP Financial Measure: (in $ thousands) Quarter Ended 09/30/2003 12/31/2003 03/31/2004 06/30/2004 Net loss $(99,678) $(148,840) $(64,967) $(39,594) Income from discontinued operations, net of tax (5,076) 2,159 (14,544) (16,455) Cumulative effect of change in accounting principle for asset retirement obligations, net of related income tax benefits --- --- --- --- Minority interests (151) 1,258 1,346 1,463 Provision for income taxes 85 137 153 184 Interest expense, amortization of deferred financing costs and dividends on preferred stock 62,408 68,906 57,322 56,568 Interest and other income (expense) 35,104 72,521 25,027 1,349 Depreciation, amortization and accretion 60,846 61,378 61,225 61,119 Non-cash general and administrative compensation charges 6,205 53 2,215 6,203 Asset write-down charges 6,137 6,800 1,948 1,868 Restructuring charges (credits) (1,058) --- (33) --- Adjusted EBITDA $64,822 $64,372 $69,692 $72,705 CROWN CASTLE INTERNATIONAL CORP. Summary Fact Sheet Restricted and Unrestricted Subsidiaries (in $ thousands) Quarter Ended 9/30/03 Crown Restricted Atlantic Other CCIC Revenues Site Rental 94,620 25,507 --- 120,127 Services 14,034 3,362 --- 17,396 Total Revenues 108,654 28,869 --- 137,523 Operating Expenses Site Rental 31,162 8,900 --- 40,062 Services 9,349 829 --- 10,178 Total Operating Expenses 40,511 9,729 --- 50,240 General & Administrative Site Rental 5,899 457 --- 6,356 Services 12,664 988 1,414 15,066 Total General & Administrative 18,563 1,445 1,414 21,422 Operating Cash Flow Site Rental 57,559 16,150 --- 73,709 Services (7,979) 1,545 (1,414) (7,848) Total Pre-Overhead Cash Flow 49,580 17,695 (1,414) 65,861 Corporate Overhead 1,039 --- --- 1,039 Adjusted EBITDA 48,541 17,695 (1,414) 64,822 Quarter Ended 9/30/03 Crown Restricted Atlantic Other CCIC Gross Margins: Site Rental 67% 65% --- 67% Services 33% 75% --- 41% Operating Cash Flow Margins Site Rental 61% 63% --- 61% Services -57% 46% --- -45% Adjusted EBITDA Margin 45% 61% N/A 47% Quarter Ended 12/31/03 Crown Restricted Atlantic Other CCIC Revenues Site Rental 98,047 27,499 --- 125,546 Services 15,227 3,145 --- 18,372 Total Revenues 113,274 30,644 --- 143,918 Operating Expenses Site Rental 32,724 9,796 --- 42,520 Services 10,010 2,128 --- 12,138 Total Operating Expenses 42,734 11,924 --- 54,658 General & Administrative Site Rental 6,769 571 --- 7,340 Services 12,680 1,198 1,683 15,561 Total General & Administrative 19,449 1,769 1,683 22,901 Operating Cash Flow Site Rental 58,554 17,132 --- 75,686 Services (7,463) (181) (1,683) (9,327) Total Pre-Overhead Cash Flow 51,091 16,951 (1,683) 66,359 Corporate Overhead 1,987 --- --- 1,987 Adjusted EBITDA 49,104 16,951 (1,683) 64,372 Quarter Ended 12/31/03 Crown Restricted Atlantic Other CCIC Gross Margins: Site Rental 67% 64% --- 66% Services 34% 32% --- 34% Operating Cash Flow Margins Site Rental 60% 62% --- 60% Services -49% -6% --- -51% Adjusted EBITDA Margin 43% 55% N/A 45% Quarter Ended 3/31/04 Crown Restricted Atlantic Other CCIC Revenues Site Rental 100,896 28,073 --- 128,969 Services 13,178 1,525 --- 14,703 Total Revenues 114,074 29,598 --- 143,672 Operating Expenses Site Rental 31,427 9,508 --- 40,935 Services 9,373 1,623 --- 10,996 Total Operating Expenses 40,800 11,131 --- 51,931 General & Administrative Site Rental 6,163 459 --- 6,622 Services 12,325 989 1,674 14,988 Total General & Administrative 18,488 1,448 1,674 21,610 Operating Cash Flow Site Rental 63,306 18,106 --- 81,412 Services (8,520) (1,087) (1,674) (11,281) Total Pre-Overhead Cash Flow 54,786 17,019 (1,674) 70,131 Corporate Overhead 439 --- --- 439 Adjusted EBITDA 54,347 17,019 (1,674) 69,692 Quarter Ended 3/31/04 Crown Restricted Atlantic Other CCIC Gross Margins: Site Rental 69% 66% --- 68% Services 29% -6% --- 25% Operating Cash Flow Margins Site Rental 63% 64% --- 63% Services -65% -71% --- -77% Adjusted EBITDA Margin 48% 58% N/A 49% Quarter Ended 6/30/04 Crown Restricted Atlantic Other CCIC Revenues Site Rental 103,650 27,713 --- 131,363 Services 16,110 2,138 265 18,513 Total Revenues 119,760 29,851 265 149,876 Operating Expenses Site Rental 32,561 9,282 --- 41,843 Services 10,284 1,670 318 12,272 Total Operating Expenses 42,845 10,952 --- 54,115 General & Administrative Site Rental 6,847 476 --- 7,323 Services 13,365 802 1,195 15,362 Total General & Administrative 20,212 1,278 1,195 22,685 Operating Cash Flow Site Rental 64,242 17,955 --- 82,197 Services (7,539) (334) (1,248) (9,121) Total Pre-Overhead Cash Flow 56,703 17,621 (1,248) 73,076 Corporate Overhead 371 --- --- 371 Adjusted EBITDA 56,332 17,621 (1,248) 72,705 Quarter Ended 6/30/04 Crown Restricted Atlantic Other CCIC Gross Margins: Site Rental 69% 67% --- 68% Services 36% 22% -20% 34% Operating Cash Flow Margins Site Rental 62% 65% --- 63% Services -47% -16% -471% -49% Adjusted EBITDA Margin 47% 59% -471% 49% Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP Financial Measure: (in $ thousands) Quarter Ended 09/30/2003 12/31/2003 03/31/2004 06/30/2004 Net loss $(99,678) $(148,840) $(64,967) $(39,594) Income from discontinued operations, net of tax (5,076) 2,159 (14,544) (16,455) Cumulative effect of change in accounting principle for asset retirement obligations, net of related income tax benefits --- --- --- --- Minority interests (151) 1,258 1,346 1,463 Provision for income taxes 85 137 153 184 Interest expense, amortization of deferred financing costs and dividends on preferred stock 62,408 68,906 57,322 56,568 Interest and other income (expense) 35,104 72,521 25,027 1,349 Depreciation, amortization and accretion 60,846 61,378 61,225 61,119 Non-cash general and administrative compensation charges 6,205 53 2,215 6,203 Asset write-down charges 6,137 6,800 1,948 1,868 Restructuring charges (credits) (1,058) --- (33) --- Adjusted EBITDA $64,822 $64,372 $69,692 $72,705 CCI FACT SHEET Q2 2004 $ in thousands Q2 '03 Q2 '04 % Change CCUSA and Crown Atlantic Site Rental Revenue $110,504 $120,827 9% Ending Sites 10,718 10,608 -1% CCAUS Site Rental Revenue $6,142 $10,536 72% Ending Sites 1,387 1,388 0% TOTAL CCIC Site Rental Revenue $116,646 $131,363 13% Ending Sites 12,105 11,996 -1% Ending Cash and Investments $523,158 $232,503 Debt Bank Debt $1,019,424 $1,455,385 Bonds $2,167,414 $1,718,752 12 3/4% Preferred Stock $223,904 $0 6 1/4% & 8 1/4% Convertible Preferred Stock $506,033 $507,371 Total Debt $3,916,775 $3,681,508 Leverage Ratios Net Bank Debt / EBITDA* 2.1X 4.2X Net Bank Debt + Bonds / EBITDA* 12.0X 10.1X Total Net Debt / EBITDA* 14.1X 11.9X *Last Quarter Annualized Adjusted EBITDA $241,332 $290,820
SOURCE Crown Castle International Corp.
W. Benjamin Moreland, CFO, or Jay Brown, Treasurer, both of Crown Castle International Corp., +1-713-570-3000
http://www.crowncastle.com