Crown Castle International Reports First Quarter 2005 Results
HOUSTON, April 28 /PRNewswire-FirstCall/ -- Crown Castle International Corp. (NYSE: CCI) today reported results for the first quarter ended March 31, 2005.
Site rental revenue for the first quarter of 2005 increased $10.7 million, or 8.3%, to $140.9 million from $130.2 million for the same period in the prior year. Site rental gross margin, defined as site rental revenue less site rental cost of operations, increased 9.0% to $93.2 million, up $7.7 million in the first quarter of 2005 from the same period in 2004. Operating loss was $6.1 million in the first quarter of 2005, compared to a loss of $6.1 million in the first quarter of 2004.
Adjusted EBITDA for the first quarter of 2005 increased $7.8 million, or 11.3%, to $76.5 million, up from $68.8 million for the same period in 2004. Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, was $34.1 million for the first quarter of 2005, compared to $11.4 million for the first quarter of 2004. For the first quarter of 2005, total capital expenditures were $9.6 million, comprised of $3.2 million of sustaining capital expenditures and $6.4 million of revenue generating capital expenditures.
Net loss was $128.8 million for the first quarter of 2005, inclusive of $82.6 million in losses from the early retirement of debt, compared to a net loss of $76.6 million for the same period in 2004, inclusive of $24.4 million of losses from the early retirement of debt. Net loss after deduction of dividends on preferred stock was $138.4 million in the first quarter of 2005, compared to a loss of $86.3 million for the same period last year. First quarter net loss per share was $(0.62) compared to a net loss per share of $(0.39) in last year's first quarter.
OPERATING RESULTS
US site rental revenue for the first quarter of 2005 increased $9.8 million, or 8.1%, to $130.7 million, compared to first quarter 2004 US site rental revenue of $120.9 million, which included $2.4 million of revenue primarily associated with a lease buyout and reconciliation activities with certain customers. US site rental gross margin increased 9.0% to $87.7 million, up $7.2 million in the first quarter of 2005 from the same period in 2004.
Australia site rental revenue for the first quarter of 2005 increased $0.9 million, or 9.9%, to $10.2 million, up from $9.3 million for the same period in 2004. Australia site rental gross margin increased 9.0% to $5.6 million, up $0.5 million in the first quarter of 2005 from the same period in 2004.
"We are starting 2005 on solid footing," said John P. Kelly, President and Chief Executive Officer of Crown Castle. "Led by continued strong demand for our towers in both the US and Australia, we continue to grow site rental revenue and Adjusted EBITDA consistent with our plan. Our operational execution has never been better as we continue our focus on assisting our customers as they build out their wireless networks."
During the first quarter of 2005, Crown Castle spent $173.7 million to purchase $93.5 million of face value of its 4% Convertible Notes (convertible to common shares at $10.83 per share), reducing potential shares outstanding by 8.6 million. Also, between April 1, 2005 and April 28, 2005, Crown Castle purchased approximately 6.1 million shares of its common stock using approximately $101.1 million in cash, an average of $16.48 per share and purchased $24.6 million of 4% Convertible Notes for $43.4 million in cash, reducing potential shares outstanding by 2.3 million.
"Over the past four months, we have reduced our share count by 17.0 million, or approximately 7%, including the assumed conversion of the 4% Convertible Notes," stated Ben Moreland, Chief Financial Officer of Crown Castle. "As we have previously stated, we are focused on refinancing our existing indebtedness and increasing recurring cash flow per share, and may accomplish this, in part, by reducing our share count. Our purchases are consistent with our initiatives, and we believe this is an attractive way to invest our liquidity."
Crown Castle plans to file amended first, second and third quarter 2004 Form 10-Q's, related to the previously disclosed changes to its lease accounting, prior to filing its first quarter 2005 Form 10-Q.
EMERGING BUSINESSES SEGMENT
Crown Castle is pursuing certain strategic opportunities, or adjacent businesses, which it believes exhibit sufficient potential to achieve an appropriate risk-adjusted return on investment and complement its core site rental business. Beginning in the first quarter of 2005, Crown Castle will present an Emerging Businesses segment, which will include Crown Castle Mobile Media and Crown Castle Solutions, in its consolidated financial statements to provide additional clarity on the performance of the core tower business and the discretionary investments being made in these emerging businesses. Crown Castle Mobile Media is seeking to maximize the value of its nationwide spectrum license through the provision of rich media services to mobile devices. Crown Castle Solutions seeks to provide a cost effective distributed antenna system solution to wireless carriers in areas where traditional tower deployments are unavailable.
OUTLOOK
The following outlook tables are based on current expectations and assumptions and assume a US dollar to Australian dollar exchange rate of 0.73 US dollars to 1.00 Australian dollars. This Outlook section contains forward-looking statements, and actual results may differ materially. Information regarding potential risks which could cause actual results to differ from the forward-looking statements herein is set forth below and in Crown Castle's filings with the Securities and Exchange Commission.
The second quarter 2005 outlook contains certain anticipated one-time items in our US and Australian businesses. In the US, Crown Castle expects an increase in site rental cost of operations of approximately $1.2 million as compared to the first quarter of 2005, due primarily to seasonal repair and maintenance expense. In Australia, Crown Castle expects an increase in site rental revenue from a payment of approximately $2.1 million from an agreement with one of its customers. Further, Crown Castle has adjusted its interest expense outlook, which assumes certain refinancing activities are completed in May 2005.
The following tables set forth Crown Castle's current outlook:
(dollars in millions) Second Quarter 2005 Full Year 2005
Site Rental Revenue $144 to 146 $ 575 to 585
Site Rental Cost of Operations $48 to 50 $ 185 to 195
Site Rental Gross Margin $95 to 97 $ 385 to 400
Adjusted EBITDA $77 to 79 $ 310 to 320
Interest Expense $35 to 37 $ 130 to 137
Sustaining Capital Expenditures $5 to 6 $ 10 to 14
Recurring Cash Flow $35 to 37 $ 165 to 175
Revenue Generating Capital Expenditures:
Revenue Enhancing on Existing Sites $5 to 10 $ 20 to 30
Land Purchases $3 to 5 $7 to 12
New Site Construction $5 to 10 $ 20 to 25
Total Revenue Generating Capital
Expenditures $13 to 25 $ 47 to 67
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Friday, April 29, 2005, at 10:30 a.m. eastern time to discuss first quarter results and Crown Castle's Outlook. Please dial 303-262-2075 and ask for the Crown Castle call at least 10 minutes prior to the start time. A telephonic replay of the conference call will be available from 1:00 p.m. eastern time on Friday, April 29, 2005 through 11:59 p.m. eastern time on Friday, May 6, 2005 and may be accessed by dialing 303-590-3000 using passcode 11029402#. An audio archive will also be available on Crown Castle's website at http://www.crowncastle.com shortly after the call and will be accessible for approximately 90 days.
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 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit: http://www.crowncastle.com .
Non-Cash Compensation and Discontinued Operations
Crown Castle incurs non-cash compensation charges related to the issuance of restricted stock and stock options to certain employees and executives. Beginning in the first quarter of 2005 and in accordance with the provisions of SEC Staff Accounting Bulletin No. 107, Crown Castle is classifying all non- cash compensation as components of cost of operations and general and administrative costs. In prior periods, Crown Castle had shown non-cash compensation as a separate line-item on its income statement. Prior period amounts of non-cash compensation have been reclassified for comparison purposes.
In January 2005, Crown Castle adopted a plan to sell OpenCell, a small subsidiary that manufactures distributed antenna system equipment. As a result, Crown Castle has restated its financial statements to present the assets, liabilities, results of operations and cash flows of OpenCell as amounts from discontinued operations. Such restatements have been made for all periods presented.
Summary of Non-Cash Amounts In Tower Gross Margin
In accordance with applicable accounting standards, Crown Castle recognizes site rental revenues and ground lease expenses monthly on a straight-line basis, regardless of whether the receipts and payments are in equal monthly amounts. An agreement, related to an acquisition in Australia, provides the seller with a rent-free period at the beginning of the lease term, and other agreements call for rent to be prepaid for a specified period. If, and to the extent the payment terms call for fixed escalations (as in fixed dollar or fixed percentage increases), the effect of such increases is recognized on a straight-line basis over the appropriate lease term. As a result of this accounting method, a portion of the revenue and expense recognized in a given period represents cash collected or paid in other periods.
A summary of the non-cash portions of our site rental revenues, ground lease expense and resulting impact on site rental gross margins is as follows:
(dollars in thousands) For the Three Months Ended
March 31, 2005
Non-Cash portion of site rental revenues:
Amounts attributable to rent-free periods $1,628
Amounts attributable to straight-line
recognition of fixed escalations $1,323
$2,951
Non-Cash portion of ground lease expense:
Amounts attributable to straight-line
recognition of fixed escalations $3,408
Non-Cash compensation charges $ 47
Non-Cash impact on site rental gross margins: $ (504)
Non-GAAP Financial Measures
This press release includes presentations of Adjusted EBITDA and recurring cash flow, which are non-GAAP financial measures.
Crown Castle defines Adjusted EBITDA as net income (loss) plus cumulative effect of change in accounting principle, income (loss) from discontinued operations, minority interests, credit (provision) for income taxes, interest expense, amortization of deferred financing costs, interest and other income (expense), depreciation, amortization and accretion, operating non-cash compensation charges, asset write-down charges and restructuring charges (credits). Adjusted EBITDA is not intended as an alternative measure of operating results (as determined in accordance with Generally Accepted Accounting Principles (GAAP)). Adjusted EBITDA is presented as additional information because management believes it to be 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.
Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less sustaining capital expenditures. Each of the amounts included in the calculation of recurring cash flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures, which is not defined under GAAP. Sustaining capital expenditures are defined as capital expenditures (determined in accordance with GAAP) which do not increase the capacity or term of an asset. Recurring cash flow is not intended as an alternative measure of cash flow from operations (as determined in accordance with GAAP). Recurring cash flow is provided as additional information because management believes it to be useful in providing investors with a reasonable estimate of our cash flow available for discretionary investments (including expansion projects, improvements to existing sites, debt repayment, securities purchases and dividends) without reliance on additional borrowing or the use of our cash and cash equivalents.
Our measures of Adjusted EBITDA and recurring cash flow may not be comparable to similarly titled measures of other companies. The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures:
Adjusted EBITDA is computed as follows:
For the Three Months Ended
March 31
(dollars in thousands) 2005 2004
Net income (loss) $(128,761) $(76,637)
Income (loss) from discontinued
operations, net of tax 1,499 (13,002)
Minority interests (1,275) 131
Credit (provision) for income taxes 144 653
Interest expense and amortization of
deferred financing costs 39,269 57,322
Interest and other income (expense) 83,017 25,416
Depreciation, amortization and accretion 72,172 70,743
Operating non-cash compensation charges 1,548 2,215
Asset write-down charges 436 1,948
Restructuring charges (credits) 8,477 (33)
Adjusted EBITDA $76,526 $68,756
Recurring Cash Flow is computed as follows:
(dollars in thousands) For the Three Months Ended
March 31, 2005
Net cash provided by operating activities $27,041
Add: Other adjustments (A) 10,216
Less: Sustaining capital expenditures (3,178)
Recurring Cash Flow $34,079
(A) Other adjustments include adjustments for changes in assets and
liabilities, excluding the effects of acquisitions, restructuring
charges and provision for income taxes.
Sustaining Capital Expenditures is computed as follows:
(dollars in thousands) For the Three Months Ended
March 31, 2005
Capital expenditures $9,599
Less: Revenue enhancing on existing sites (3,544)
Less: Land purchases (321)
Less: New site construction (2,556)
Sustaining capital expenditures $3,178
Adjusted EBITDA for the quarter ending June 30, 2005 and the year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q2 2005 Outlook Full Year 2005 Outlook
Net income (loss) $(117.2) to (101.6) $(312.0) to (261.5)
Minority interests (1.0) to (2.0) 0.0 to (4.0)
Credit (provision) for
income taxes 0.1 to 0.2 0.5 to 2.0
Interest expense and amortization
of deferred financing costs 35.0 to 37.0 130.0 to 137.0
Interest and other income
(expense) 75.0 to 80.0 155.0 to 165.0
Depreciation, amortization
and accretion 70.0 to 75.0 280.0 to 300.0
Operating non-cash compensation
charges 1.5 to 2.0 6.0 to 8.0
Asset write-down charges 0.0 to 2.0 2.0 to 5.0
Restructuring charges (credits) --- 8.0 to 9.0
Adjusted EBITDA $77.0 to 79.0 $310.0 to 320.0
Recurring Cash Flow for the quarter ending June 30, 2005 and the year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q2 2005 Outlook Full Year 2005 Outlook
Net cash provided by operating
activities $36.0 to 42.0 $159.0 to 185.0
Add: Other adjustments (A) 0.0 to 5.0 0.0 to 20.0
Less: Sustaining capital
expenditures (5.0) to (6.0) (10.0) to (14.0)
Recurring Cash Flow $35.0 to 37.0 $165.0 to 175.0
(A) Other adjustments include adjustments for changes in assets and
liabilities, excluding the effects of acquisitions, restructuring
charges and provision for income taxes.
Other Calculations:
Sustaining Capital Expenditures for the quarter ending June 30, 2005 and year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q2 2005 Outlook Full Year 2005 Outlook
Capital expenditures $18.0 to 31.0 $57.0 to 81.0
Less: Revenue enhancing
on existing sites (5.0) to (10.0) (20.0) to (30.0)
Less: Land purchases (3.0) to (5.0) (7.0) to (12.0)
Less: New site construction (5.0) to (10.0) (20.0) to (25.0)
Sustaining capital expenditures $5.0 to 6.0 $10.0 to 14.0
Site Rental Gross Margin for the quarter ending June 30, 2005 and for the year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q2 2005 Outlook Full Year 2005 Outlook
Site rental revenue $144.0 to 146.0 $575.0 to 585.0
Less: Site rental cost of
operations (48.0) to (50.0) (185.0) to (195.0)
Site rental gross margin $95.0 to 97.0 $385.0 to 400.0
Recurring Cash Flow for the quarter ending June 30, 2005 and for the year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q2 2005 Outlook Full Year 2005 Outlook
Adjusted EBITDA $77.0 to 79.0 $310.0 to 320.0
Less: Interest expense (35.0) to (37.0) (130.0) to (137.0)
Less: Sustaining capital
expenditures (5.0) to (6.0) (10.0) to (14.0)
Recurring Cash Flow $35.0 to 37.0 $165.0 to 175.0
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements and information that are based on our management's current expectations. Such statements include, but are not limited to, plans, projections and estimates regarding (i) demand for our towers, (ii) purchases of our shares or other securities, (iii) return on investment of our emerging businesses, adjacent businesses and strategic opportunities, (iv) currency exchange rates, (v) site rental revenue, (vi) repair and maintenance expense, (vii) customer payments, (viii) site rental cost of operations, (ix) site rental gross margin, (x) Adjusted EBITDA, (xi) interest expense, (xii) sustaining capital expenditures, (xiii) recurring cash flow, (xiv) revenue enhancing capital expenditures on existing sites, (xv) land purchases, (xvi) new site construction, and (xvii) revenue generating capital expenditures. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:
* Our business depends on the demand for wireless communications and
towers, and we may be adversely affected by any slowdown in such
demand.
* The loss or consolidation of, network sharing among, or financial
instability of any of our limited number of customers may materially
decrease revenues.
* An economic or wireless telecommunications industry slowdown may
materially and adversely affect our business and the business of our
customers.
* Restrictive covenants on our debt instruments may limit our ability to
take actions that may be in our best interests.
* Our substantial level of indebtedness may adversely affect our ability
to react to changes in our business and limit our ability to use debt
to fund future capital needs.
* We operate in a competitive industry and some of our competitors have
significantly more resources or less debt than we do.
* Technology changes may significantly reduce the demand for site leases
and negatively impact the growth in our revenues.
* 2.5G/3G and other technologies may not deploy or be adopted by
customers as rapidly or in the manner projected.
* We generally lease or sublease the land under our sites and towers and
may not be able to extend these leases.
* We may need additional financing, which may not be available, for
strategic growth opportunities.
* Laws and regulations, which may change at any time and with which we
may fail to comply, regulate our business.
* We are heavily dependent on our senior management.
* Our network services business has historically experienced significant
volatility in demand, which reduces the predictability of our results.
* We may suffer from future claims if radio frequency emissions from
wireless handsets or equipment on our towers are demonstrated to cause
negative health effects.
* Certain provisions of our certificate of incorporation, bylaws and
operative agreements and domestic and international competition laws
may make it more difficult for a third party to acquire control of us
or for us to acquire control of a third party, even if such a change
in control would be beneficial to our stockholders.
* Sales or issuances of a substantial number of shares of our common
stock may adversely affect the market price of our common stock.
* Disputes with customers and suppliers may adversely affect results.
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.
Contacts: W. Benjamin Moreland, CFO
Jay Brown, Treasurer
Crown Castle International Corp.
713-570-3000
Crown Castle International Corp.
Condensed Consolidated Statement of Operations
And Other Financial Data
(in thousands, except per share data)
Three Months Ended
March 31,
2005 2004
Net revenues:
Site rental $140,926 $130,180
Network services and other 16,179 14,703
Total net revenues 157,105 144,883
Costs of operations (exclusive of depreciation,
amortization and accretion):
Site rental (including non-cash compensation
charges) 47,680 44,602
Network services and other (including non-cash
compensation charges) 11,468 11,035
Total costs of operations 59,148 55,637
General and administrative (including non-cash
compensation charges) 22,547 22,266
Corporate development 432 439
Restructuring charges (credits) (including non-
cash compensation charges) 8,477 (33)
Asset write-down charges 436 1,948
Depreciation, amortization and accretion 72,172 70,743
Operating loss (6,107) (6,117)
Interest and other income (expense) (83,017) (25,416)
Interest expense and amortization of deferred
financing costs (39,269) (57,322)
Loss from continuing operations before income
taxes and minority interests (128,393) (88,855)
Credit (provision) for income taxes (144) (653)
Minority interests 1,275 (131)
Loss from continuing operations (127,262) (89,639)
Income (loss) from discontinued operations, net
of tax (1,499) 13,002
Net loss (128,761) (76,637)
Dividends on preferred stock (9,653) (9,696)
Net loss after deduction of dividends on
preferred stock $(138,414) $(86,333)
Per common share - basic and diluted:
Loss from continuing operations $(0.61) $(0.45)
Income (loss) from discontinued operations (0.01) 0.06
Net loss $(0.62) $(0.39)
Common shares outstanding - basic and diluted 223,601 219,294
Adjusted EBITDA (before restructuring and asset
write-down charges):
Site rental $85,999 $79,033
Network services and other (before corporate
development expenses) (9,041) (9,838)
Adjusted EBITDA before corporate development
expenses 76,958 69,195
Corporate development (432) (439)
Total Adjusted EBITDA $76,526 $68,756
Non-cash compensation charges:
Site rental non-cash compensation charges 47 77
Network services non-cash compensation charges 24 39
General and administrative non-cash
compensation charges 1,477 2,099
Operating non-cash compensation charges 1,548 2,215
Restructuring non-cash compensation charges 6,424 ---
Total non-cash compensation charges $7,972 $2,215
Crown Castle International Corp.
Condensed Consolidated balance sheet
(in thousands)
March 31, December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $383,077 $566,707
Receivables, net of allowance for doubtful 12,883 28,366
accounts
Inventories 4,933 4,781
Deferred site rental receivable 4,988 6,395
Prepaid expenses and other current assets 27,455 28,771
Assets of discontinued operations 3,048 3,693
Total current assets 436,384 638,713
Property and equipment, net of accumulated
depreciation 3,304,591 3,368,166
Goodwill 333,718 333,718
Deferred site rental receivable 87,657 84,928
Deferred financing costs and other assets, net of
accumulated amortization 141,019 145,997
4,303,369 4,571,522
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $6,765 $12,168
Accrued interest 31,372 43,308
Accrued compensation and related benefits 5,844 15,445
Deferred rental revenues and other accrued
liabilities 113,621 116,326
Liabilities of discontinued operations 640 568
Long-term debt, current maturities 182,564 97,250
Total current liabilities 340,806 285,065
Long-term debt, less current maturities 1,552,346 1,753,148
Deferred ground lease payable 120,282 116,874
Other liabilities 42,082 44,302
Total liabilities 2,055,516 2,199,389
Minority interests 29,403 30,468
Redeemable preferred stock 508,374 508,040
Stockholders' equity 1,710,076 1,833,625
$4,303,369 $4,571,522
Crown Castle International Corp.
Condensed Consolidated Statement of Cash flows
(in thousands)
Three Months Ended
March 31,
2005 2004
Cash flows from operating activities:
Net loss $(128,761) $(76,637)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation, amortization and accretion 72,172 70,743
Losses on purchases of long-term debt 82,587 24,367
Amortization of deferred financing
costs and discounts on long-term debt 1,494 2,960
Non-cash compensation charges 7,972 2,215
Asset write-down charges 436 1,948
Minority interests (1,275) 131
Equity in losses and write-downs of
unconsolidated affiliates 2,791 1,173
Loss (income) from discontinued operations 1,499 (13,002)
Changes in assets and liabilities:
Decrease in accrued interest (11,936) (17,833)
Decrease in accounts payable (5,398) (1,746)
Increase (decrease) in deferred
rental revenues, deferred site rental
receivable and other liabilities (8,271) (6,675)
Decrease in receivables 15,427 3,307
Increase in inventories, prepaid
expenses and other assets (1,696) (2,276)
Net cash provided by (used for)
operating activities 27,041 (11,325)
Cash flows from investing activities:
Proceeds from disposition of property and
equipment 4 415
Capital expenditures (9,599) (6,601)
Investments in affiliates and other (45) (14,028)
Maturities of investments --- 62,650
Purchases of investments --- (36,050)
Net cash provided by (used for)
investing activities (9,640) 6,386
Cash flows from financing activities:
Proceeds from issuance of capital stock 3,319 3,562
Purchases and redemption of long-term debt (173,695) (267,359)
Payments under revolving credit agreements (21,987) (15,000)
Purchases of capital stock (4,074) (4,108)
Principal payments on long-term debt --- (2,750)
Incurrence of financing costs (3,550) (412)
Net cash used for financing activities (199,987) (286,067)
Effect of exchange rate changes on cash (262) 264
Discontinued operations (782) 31,509
Net decrease in cash and cash equivalents (183,630) (259,233)
Cash and cash equivalents at beginning of period 566,707 409,344
Cash and cash equivalents at end of period $383,077 $150,111
Supplemental disclosure of cash flow information:
Interest paid $49,295 $71,860
Income taxes paid 144 153
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 6/30/04
CCUSA CCAL EmB CCIC
Revenues
Site Rental 121,058 11,449 --- 132,507
Services 17,085 1,123 40 18,248
Total Revenues 138,143 12,572 40 150,755
Operating Expenses
Site Rental 41,705 3,913 --- 45,618
Services 11,123 681 302 12,106
Total Operating Expenses 52,828 4,594 302 57,724
General & Administrative
Site Rental 4,693 2,656 --- 7,349
Services 19,498 --- 520 20,018
Total General & Administrative 24,191 2,656 520 27,367
Operating Cash Flow
Site Rental 74,660 4,880 --- 79,540
Services (13,536) 442 (782) (13,876)
Total Pre-Corporate Development
Cash Flow 61,124 5,322 (782) 65,664
Corporate Development 371 --- --- 371
Add: Non-Cash Compensation 6,177 26 --- 6,203
Adjusted EBITDA 66,930 5,348 (782) 71,496
Quarter Ended 6/30/04
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 66% 66% --- 66%
Services 35% 39% N/M 34%
Operating Cash Flow Margins
Site Rental 62% 43% --- 60%
Services -79% 39% N/M -76%
Adjusted EBITDA Margin 48% 43% N/M 47%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 9/30/04
CCUSA CCAL EmB CCIC
Revenues
Site Rental 125,546 9,683 --- 135,229
Services 13,900 975 81 14,956
Total Revenues 139,446 10,658 81 150,185
Operating Expenses
Site Rental 42,377 3,427 --- 45,804
Services 9,201 892 624 10,717
Total Operating Expenses 51,578 4,319 624 56,521
General & Administrative
Site Rental 4,211 2,517 --- 6,728
Services 14,403 --- 1,805 16,208
Total General & Administrative 18,614 2,517 1,805 22,936
Operating Cash Flow
Site Rental 78,958 3,739 --- 82,697
Services (9,704) 83 (2,348) (11,969)
Total Pre-Corporate Development
Cash Flow 69,254 3,822 (2,348) 70,728
Corporate Development 211 --- --- 211
Add: Non-Cash Compensation 1,433 9 --- 1,442
Adjusted EBITDA 70,476 3,831 (2,348) 71,959
Quarter Ended 9/30/04
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 66% 65% --- 66%
Services 34% 9% N/M 28%
Operating Cash Flow Margins
Site Rental 63% 39% --- 61%
Services -70% 9% N/M -80%
Adjusted EBITDA Margin 51% 36% N/M 48%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 12/31/04
CCUSA CCAL EmB CCIC
Revenues
Site Rental 128,838 10,711 --- 139,549
Services 16,907 1,003 76 17,986
Total Revenues 145,745 11,714 76 157,535
Operating Expenses
Site Rental 43,474 4,655 --- 48,129
Services 11,494 825 575 12,894
Total Operating Expenses 54,968 5,480 575 61,023
General & Administrative
Site Rental 4,629 3,039 --- 7,668
Services 16,303 --- 1,125 17,428
Total General & Administrative 20,932 3,039 1,125 25,096
Operating Cash Flow
Site Rental 80,735 3,017 --- 83,752
Services (10,890) 178 (1,624) (12,336)
Total Pre-Corporate Development
Cash Flow 69,845 3,195 (1,624) 71,416
Corporate Development 434 --- --- 434
Add: Non-Cash Compensation 3,212 16 --- 3,228
Adjusted EBITDA 72,623 3,211 (1,624) 74,210
Quarter Ended 12/31/04
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 66% 57% --- 66%
Services 32% 18% N/M 28%
Operating Cash Flow Margins
Site Rental 63% 28% --- 60%
Services -64% 18% N/M -69%
Adjusted EBITDA Margin 50% 27% N/M 47%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 3/31/05
CCUSA CCAL EmB CCIC
Revenues
Site Rental 130,692 10,173 61 140,926
Services 14,138 2,041 --- 16,179
Total Revenues 144,830 12,214 61 157,105
Operating Expenses
Site Rental 43,011 4,590 79 47,680
Services 10,277 915 276 11,468
Total Operating Expenses 53,288 5,505 355 59,148
General & Administrative
Site Rental 4,472 2,836 --- 7,308
Services 14,587 --- 652 15,239
Total General & Administrative 19,059 2,836 652 22,547
Operating Cash Flow
Site Rental 83,209 2,747 (18) 85,938
Services (10,726) 1,126 (928) (10,528)
Total Pre-Corporate Development
Cash Flow 72,483 3,873 (946) 75,410
Corporate Development --- --- 432 432
Add: Non-Cash Compensation 1,506 14 28 1,548
Adjusted EBITDA 73,989 3,887 (1,350) 76,526
Quarter Ended 3/31/05
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 67% 55% -30% 66%
Services 27% 55% --- 29%
Operating Cash Flow Margins
Site Rental 64% 27% -30% 61%
Services -76% 55% --- -65%
Adjusted EBITDA Margin 51% 32% N/M 49%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
6/30/2004 9/30/2004 12/31/2004 3/31/2005
Net income (loss) $(50,780) $450,656 $(88,129) $(128,761)
Income (loss) from discontinued
operations, net of tax (15,107) (509,140) 1,065 1,499
Minority interests 277 544 (1,154) (1,275)
Credit (provision)
for income taxes 684 (6,856) 149 144
Interest expense, amortization
of deferred financing costs 56,568 52,281 40,599 39,269
Interest and other income
(expense) 1,310 13,552 37,985 83,017
Depreciation, amortization and
accretion 70,473 69,925 72,424 72,172
Operating non-cash compensation
charges 6,203 1,442 3,228 1,548
Asset write-down charges 1,868 --- 3,836 436
Restructuring charges (credits) --- (445) 4,207 8,477
Adjusted EBITDA $71,496 $71,959 $74,210 $76,526
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 6/30/04
Restricted Other CCIC
Revenues
Site Rental 132,507 --- 132,507
Services 18,248 --- 18,248
Total Revenues 150,755 --- 150,755
Operating Expenses
Site Rental 45,618 --- 45,618
Services 12,106 --- 12,106
Total Operating Expenses 57,724 --- 57,724
General & Administrative
Site Rental 7,349 --- 7,349
Services 20,018 20,018
Total General & Administrative 27,367 --- 27,367
Operating Cash Flow
Site Rental 79,540 --- 79,540
Services (13,876) --- (13,876)
Total Pre-Corporate Development
Cash Flow 65,664 --- 65,664
Corporate Development 371 --- 371
Add: Non-Cash Compensation 6,203 --- 6,203
Adjusted EBITDA 71,496 --- 71,496
Quarter Ended 6/30/04
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 34% --- 34%
Operating Cash Flow Margins
Site Rental 60% --- 60%
Services -76% --- -76%
Adjusted EBITDA Margin 47% N/M 47%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 9/30/04
Restricted Other CCIC
Revenues
Site Rental 135,229 --- 135,229
Services 14,956 --- 14,956
Total Revenues 150,185 --- 150,185
Operating Expenses
Site Rental 45,804 --- 45,804
Services 10,717 --- 10,717
Total Operating Expenses 56,521 --- 56,521
General & Administrative
Site Rental 6,728 --- 6,728
Services 15,109 1,099 16,208
Total General & Administrative 21,837 1,099 22,936
Operating Cash Flow
Site Rental 82,697 --- 82,697
Services (10,870) (1,099) (11,969)
Total Pre-Corporate Development
Cash Flow 71,827 (1,099) 70,728
Corporate Development 211 --- 211
Add: Non-Cash Compensation 1,442 --- 1,442
Adjusted EBITDA 73,058 (1,099) 71,959
Quarter Ended 9/30/04
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 28% --- 28%
Operating Cash Flow Margins
Site Rental 61% --- 61%
Services -73% --- -80%
Adjusted EBITDA Margin 49% N/M 48%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 12/31/04
Restricted Other CCIC
Revenues
Site Rental 139,549 --- 139,549
Services 17,986 --- 17,986
Total Revenues 157,535 --- 157,535
Operating Expenses
Site Rental 48,129 --- 48,129
Services 12,894 --- 12,894
Total Operating Expenses 61,023 --- 61,023
General & Administrative
Site Rental 7,668 --- 7,668
Services 17,017 411 17,428
Total General & Administrative 24,685 411 25,096
Operating Cash Flow
Site Rental 83,752 --- 83,752
Services (11,925) (411) (12,336)
Total Pre-Corporate Development
Cash Flow 71,827 (411) 71,416
Corporate Development 434 --- 434
Add: Non-Cash Compensation 3,228 --- 3,228
Adjusted EBITDA 74,621 (411) 74,210
Quarter Ended 12/31/04
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 28% --- 28%
Operating Cash Flow Margins
Site Rental 60% --- 60%
Services -66% --- -69%
Adjusted EBITDA Margin 47% N/M 47%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 3/31/05
Restricted Other CCIC
Revenues
Site Rental 140,926 --- 140,926
Services 16,179 --- 16,179
Total Revenues 157,105 --- 157,105
Operating Expenses
Site Rental 47,645 35 47,680
Services 11,468 --- 11,468
Total Operating Expenses 59,113 35 59,148
General & Administrative
Site Rental 7,308 --- 7,308
Services 15,157 82 15,239
Total General & Administrative 22,465 82 22,547
Operating Cash Flow
Site Rental 85,973 (35) 85,938
Services (10,446) (82) (10,528)
Total Pre-Corporate Development
Cash Flow 75,527 (117) 75,410
Corporate Development --- 432 432
Add: Non-Cash Compensation 1,548 --- 1,548
Adjusted EBITDA 77,075 (549) 76,526
Quarter Ended 3/31/05
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 29% --- 29%
Operating Cash Flow Margins
Site Rental 61% --- 61%
Services -65% --- -65%
Adjusted EBITDA Margin 49% N/M 49%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
6/30/2004 9/30/2004 12/31/2004 3/31/2005
Net income (loss) $(50,780) $450,656 $(88,129) $(128,761)
Income (loss) from discontinued
operations, net of tax (15,107) (509,140) 1,065 1,499
Minority interests 277 544 (1,154) (1,275)
Credit (provision)
for income taxes 684 (6,856) 149 144
Interest expense, amortization
of deferred financing costs 56,568 52,281 40,599 39,269
Interest and other income
(expense) 1,310 13,552 37,985 83,017
Depreciation, amortization
and accretion 70,473 69,925 72,424 72,172
Operating Non-cash
compensation charges 6,203 1,442 3,228 1,548
Asset write-down charges 1,868 --- 3,836 436
Restructuring charges (credits) --- (445) 4,207 8,477
Adjusted EBITDA $71,496 $71,959 $74,210 $76,526
CCI FACT SHEET Q1 2005
$ in thousands
Q1 '04 Q1 '05 % Change
CCUSA
Site Rental Revenue $120,926 $130,692 8%
Ending Sites 10,602 10,606 0%
CCAL
Site Rental Revenue $9,254 $10,173 10%
Ending Sites 1,388 1,388 0%
CC EmB
Site Rental Revenue $--- 61 ---
Ending Sites --- --- ---
TOTAL CCIC
Site Rental Revenue $130,180 $140,926 8%
Ending Sites 11,990 11,994 0%
Ending Cash and Investments $171,485 $383,077
Debt
Bank Debt $1,467,000 $158,012
Bonds $1,718,327 $1,576,898
6 1/4% & 8 1/4% Convertible Preferred
Stock $507,037 $508,374
Total Debt $3,692,364 $2,243,284
Leverage Ratios
Net Bank Debt / EBITDA* 4.7X N/A
Net Bank Debt + Bonds / EBITDA* 11.0X 4.4X
Total Net Debt / EBITDA* 12.8X 6.1X
*Last Quarter Annualized Adjusted
EBITDA $275,024 $306,104
SOURCE Crown Castle International Corp.
-0- 04/28/2005
/CONTACT: W. Benjamin Moreland, CFO, or Jay Brown, Treasurer, both of
Crown Castle International Corp., +1-713-570-3000/
/Web site: http://www.crowncastle.com /
(CCI)
CO: Crown Castle International Corp.
ST: Texas
IN: CPR TLS
SU: ERN ERP CCA MAV
CT-AP
-- DATH064 --
9637 04/28/2005 18:25 EDT http://www.prnewswire.com