Crown Castle International Reports First Quarter 2006 Results; Raises 2006 Outlook
HOUSTON, April 26 /PRNewswire-FirstCall/ -- Crown Castle International Corp. (NYSE: CCI) today reported results for the quarter ended March 31, 2006.
Site rental revenue for the first quarter of 2006 increased $20.4 million, or 14.4%, to $161.9 million from $141.5 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 20.5% to $112.2 million, up $19.1 million in the first quarter of 2006 from the same period in 2005. Adjusted EBITDA for the first quarter of 2006 increased $20.4 million, or 26.7%, to $96.9 million, up from $76.4 million for the same period in 2005.
Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, increased 84.4% to $62.7 million for the first quarter of 2006, compared to $34.0 million for the first quarter of 2005. Weighted average common shares outstanding decreased to 214.5 million for the first quarter of 2006 from 223.6 million for the same period in the prior year. Recurring cash flow per share, defined as recurring cash flow divided by weighted average common shares outstanding, improved by 93.3% to $0.29 in the first quarter of 2006 compared to $0.15 in the first quarter of 2005.
Net loss was $6.7 million for the first quarter of 2006, inclusive of $5.7 million of income from discontinued operations, compared to a net loss of $126.9 million for the same period in 2005, inclusive of $82.6 million of losses from the early retirement of debt. Net loss after deduction of dividends on preferred stock was $11.9 million in the first quarter of 2006, inclusive of $5.7 million of income from discontinued operations, compared to a loss of $136.6 million for the same period last year, inclusive of $82.6 million of losses from the early retirement of debt. First quarter 2006 net loss per share was $(0.06), compared to a net loss per share of $(0.61) in last year's first quarter.
"We had an excellent first quarter, exceeding the outlook that we provided for site rental revenue, site rental gross margin, Adjusted EBITDA and recurring cash flow," stated John P. Kelly, President and Chief Executive Officer of Crown Castle. "Our US wireless carrier customers continue to enhance their voice and data offerings by adding equipment to our US towers at a rate higher than we previously expected. We also continue to see significant tenant activity in Australia and expect 2006 Adjusted EBITDA growth in our Australia subsidiary to be approximately 30%. Our consolidated results in the first quarter continue to reflect the attractive operating leverage of our business model as all of the growth in site rental revenue was converted to Adjusted EBITDA. Further, we have increased Adjusted EBITDA over the last twelve months by 27% while at the same time reducing weighted average shares outstanding by 4%, which is driving significant recurring cash flow per share growth."
The prior year amounts included in this release have been restated, as discussed in Crown Castle's Annual Report on Form 10-K for the year ended December 31, 2005.
SEGMENT RESULTS
US site rental revenue for the first quarter of 2006 increased $18.8 million, or 14.4%, to $150.1 million, compared to first quarter 2005 US site rental revenue of $131.3 million. US site rental gross margin increased 19.7% to $104.8 million, up $17.2 million in the first quarter of 2006 from the same period in 2005.
Australia site rental revenue for the first quarter of 2006 increased $1.5 million, or 15.1%, to $11.8 million, up from $10.2 million for the same period in 2005. Australia site rental gross margin increased 37.0% to $7.6 million, up $2.0 million in the first quarter of 2006 from the same period in 2005.
INVESTMENTS
During the first quarter of 2006, Crown Castle invested $25.1 million in common stock purchases and capital expenditures. During the quarter, Crown Castle purchased 0.1 million shares using $3.0 million in cash at an average price of $30.30 per share. Also, during the first quarter, total capital expenditures were $22.1 million, comprised of $1.9 million of sustaining capital expenditures and $20.2 million of revenue generating capital expenditures, of which $8.0 million was spent on existing sites, $4.6 million on land purchases and $7.6 million on the construction of new sites. In addition, after the end of the first quarter, from April 1, 2006 to April 26, 2006, Crown Castle purchased 1.6 million shares using $47.7 million in cash at an average price of $29.47 per share. Since January 1, 2005, Crown Castle has invested $783.9 million in purchases of its securities to reduce fully diluted common shares by 36 million shares.
"We continue to invest in activities that we believe will maximize long- term recurring cash flow per share," stated Ben Moreland, Chief Financial Officer of Crown Castle. "In the last three months, we invested approximately $50.8 million, representing 81% of first quarter 2006 recurring cash flow, by purchasing 1.7 million shares of our common stock. Given the Adjusted EBITDA growth over the last several quarters, our debt to annualized first quarter Adjusted EBITDA ratio has declined to 5.9 times since we completed our $1.9 billion Tower Revenue Notes offering. We have started to work on alternatives to raise additional debt that we believe will move us back to the top end of our leverage target of five to seven times annualized Adjusted EBITDA. Based on the outlook provided in this press release, the combination of recurring cash flow and the additional debt resulting from levering the growth in Adjusted EBITDA is expected to create approximately $600 million of capital to invest during the balance of 2006 that we expect will be invested in a blend of tower improvements and builds, tower acquisitions and stock purchases. As reflected in the outlook provided, we believe we will be able to translate the anticipated revenue growth into recurring cash flow per share growth of nearly 35% for full year 2006 compared to 2005, based on the current share count."
OUTLOOK
The following outlook tables are based on current expectations and assumptions and assume a US dollar to Australian dollar exchange rate of 0.735 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.
As reflected in the following tables, Crown Castle has increased the midpoint of its 2006 Outlook, previously issued on February 28, 2006, for site rental revenue by $5 million, site rental gross margin by $5 million, Adjusted EBITDA by $10 million and recurring cash flow by $10 million. The second quarter 2006 outlook contains an expected increase in US site rental cost of operations by approximately $2 million as compared to the first quarter of 2006, due primarily to seasonal repair and maintenance expense and an increase in Australia site rental revenue from a payment of approximately $2 million related to an agreement with one of its customers.
The following tables set forth Crown Castle's current outlook:
(in millions, except
per share amounts) Second Quarter Full Year
2006 2006
Site rental revenue $167 to $169 $665 to $675
Site rental cost of operations $52 to $54 $208 to $212
Site rental gross margin $114 to $116 $455 to $465
Adjusted EBITDA $98 to $100 $388 to $398
Interest expense $32 to $33 $126 to $129
Sustaining capital expenditures $4 to $6 $11 to $15
Recurring cash flow $61 to 63 $244 to $254
Net loss after deduction of
dividends on preferred stock $(23) to $(10) $(88) to $(41)
Net loss per share* $(0.11) to $(0.05) $(0.41) to $(0.19)
* Based on 214.8 million shares outstanding at March 31, 2006
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, April 27, 2006, at 10:30 a.m. eastern time to discuss the first quarter of 2006 results and Crown Castle's Outlook. Please dial 303-262-2051 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 12:30 p.m. eastern time on Thursday, April 27, 2006 through 11:59 p.m. eastern time on Thursday, May 4, 2006 and may be accessed by dialing 303-590-3000 using passcode 11058671#. 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 76 of the top 100 United States markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 11,000 and 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit: http://www.crowncastle.com .
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 revenue, ground lease expense and resulting impact on site rental gross margins is as follows:
For the Three Months Ended
(in thousands) March 31, 2006
Non-cash portion of site rental revenue:
Amounts attributable to rent-free periods $1,605
Amounts attributable to straight-line
recognition of fixed escalations $3,733
Non-cash portion of ground lease expense:
Amounts attributable to straight-line
recognition of fixed escalations $(4,282)
Non-cash stock-based compensation charges $(16)
Non-cash impact on site rental gross margin: $1,040
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 stock-based compensation charges, asset write-down charges and restructuring charges (credits). Adjusted EBITDA is not intended as an alternative measure of cash flow from operations or operating results (as determined in accordance with Generally Accepted Accounting Principles (GAAP)).
Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less sustaining capital expenditures. Each of the amounts included in the calculation of recurring cash flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures, which is not defined under GAAP. 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 or operating results (as determined in accordance with GAAP).
Adjusted EBITDA and recurring cash flow are presented as additional information because management believes these measures are useful indicators of the financial performance of our core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. Our measures of Adjusted EBITDA and recurring cash flow may not be comparable to similarly titled measures of other companies. 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, recurring cash flow and recurring cash flow per share for the quarters ended March 31, 2006 and March 31, 2005 are computed as follows:
For the Three Months Ended
(in thousands, except per share amounts) March 31, March 31,
2006 2005
Net income (loss) $(6,722) $(126,947)
Income (loss) from discontinued
operations, net of tax (5,657) 1,499
Minority interests (911) (1,204)
Credit (provision) for income taxes 616 144
Interest expense and amortization
of deferred financing costs 32,260 39,269
Interest and other income (expense) 1,336 83,017
Depreciation, amortization and accretion 72,091 70,187
Operating stock-based compensation charges 3,514 1,547
Asset write-down charges 335 436
Restructuring charges (credits) --- 8,477
Adjusted EBITDA $96,862 $76,425
Less: Interest expense and amortization
of deferred financing costs 32,260 39,269
Less: Sustaining capital expenditures 1,917 3,178
Recurring cash flow $62,685 $33,978
Weighted average common shares outstanding 214,473 223,601
Recurring cash flow per share $0.29 $0.15
Adjusted EBITDA and recurring cash flow for the quarter ending June 30, 2006 and the year ending December 31, 2006 are forecasted as follows:
(in millions) Q2 2006 Full Year 2006
Outlook Outlook
Net income (loss) $(18) to (5) $(69) to (22)
Income (loss) from discontinued
operations, net of tax --- (5) to (6)
Minority interests 0 to (1) (1) to (4)
Credit (provision) for income taxes 0 to 1 2 to 4
Interest expense and amortization of
deferred financing costs 32 to 33 126 to 129
Interest and other income (expense) 1 to 3 5 to 7
Depreciation, amortization and accretion 70 to 72 280 to 300
Operating stock-based compensation charges 3 to 5 13 to 17
Asset write-down charges 0 to 2 4 to 6
Restructuring charges (credits) --- ---
Adjusted EBITDA $98 to 100 $388 to 398
Less: Interest expense and amortization
of deferred financing costs 32 to 33 126 to 129
Less: Sustaining capital expenditures 4 to 6 11 to 15
Recurring cash flow $61 to 63 $244 to 254
Other Calculations:
Sustaining capital expenditures for the quarters ended March 31, 2006 and March 31, 2005 is computed as follows:
For the Three Months Ended
(in thousands) March 31, 2006 March 31, 2005
Capital expenditures $22,066 $9,599
Less: Revenue enhancing on existing sites 7,950 3,544
Less: Land purchases 4,576 321
Less: New site construction 7,623 2,556
Sustaining capital expenditures $1,917 $3,178
Site rental gross margin for the quarter ending June 30, 2006 and for the year ending December 31, 2006 is forecasted as follows:
(in millions) Q2 2006 Full Year 2006
Outlook Outlook
Site rental revenue $167 to 169 $665 to 675
Less: Site rental cost of operations 52 to 54 208 to 212
Site rental gross margin $114 to 116 $455 to 465
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) the rate of network development of our customers, (ii) growth in our business, demand for our towers and leasing rates and activity, (iii) our capital investments, including the availability and type of investments and the impact of and return on our investments, (iv) anticipated debt offerings and the impact of such offerings (v) currency exchange rates, (vi) site rental revenue, (vii) site rental cost of operations, (viii) site rental gross margin, (ix) Adjusted EBITDA, (x) interest expense, (xi) sustaining capital expenditures, (xii) recurring cash flow (including recurring cash flow per share) and (xiv) net loss (including net loss per share). 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.
-- 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 tower
leases and negatively impact the growth in our revenues.
-- 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 towers and may not
be able to extend these leases.
-- We may need additional financing, which may not be available, for
strategic growth opportunities.
-- Restrictive covenants on our debt instruments may limit our ability to
take actions that may be in our best interests.
-- Modeo's business has certain risk factors different from our core
tower business, including an unproven business model, and may fail to
operate successfully and produce results that are less than
anticipated.
-- FiberTower's business has certain risk factors different from our core
tower business, including an unproven business model, and may produce
results that are less than anticipated, resulting in a write off of
all or part of our investment in FiberTower.
-- 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.
-- We may suffer losses due to exposure to changes in foreign currency
exchange rates relating to our operations in Australia.
Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the Securities and Exchange Commission.
Contacts: Ben 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,
2006 2005
(As restated)
Net revenues:
Site rental $161,897 $141,468
Network services and other 20,768 16,179
Total net revenues 182,665 157,647
Costs of operations (exclusive of
depreciation, amortization and accretion):
Site rental 49,690 48,323
Network services and other 13,786 11,468
General and administrative 24,163 22,489
Corporate development 1,678 489
Restructuring charges --- 8,477
Asset write-down charges 335 436
Depreciation, amortization and accretion 72,091 70,187
Operating income (loss) 20,922 (4,222)
Interest and other income (expense) (1,336) (83,017)
Interest expense and amortization of
deferred financing costs (32,260) (39,269)
Loss from continuing operations
before income taxes and minority interests (12,674) (126,508)
Provision for income taxes (616) (144)
Minority interests 911 1,204
Loss from continuing operations (12,379) (125,448)
Discontinued operations:
Income (loss) from discontinued operations,
net of tax --- (1,499)
Net gain (loss) on disposal of discontinued
operations, net of tax 5,657 ---
Income (loss) from discontinued operations,
net of tax 5,657 (1,499)
Net loss (6,722) (126,947)
Dividends on preferred stock (5,201) (9,653)
Net loss after deduction of dividends
on preferred stock $(11,923) $(136,600)
Per common share - basic and diluted:
Loss from continuing operations $(0.08) $(0.60)
Income (loss) from discontinued operations 0.02 (0.01)
Net loss $(0.06) $(0.61)
Weighted average common shares outstanding -
basic and diluted 214,473 223,601
Adjusted EBITDA $96,862 $76,425
Stock-based compensation charges:
Site rental cost of operations 16 47
Network services and other costs of operations 20 24
General and administrative 3,290 1,476
Corporate development 188 ---
Total operating stock-based compensation 3,514 1,547
Restructuring charges --- 6,424
Total stock-based compensation charges $3,514 $7,971
Crown Castle International Corp.
Condensed Consolidated Balance Sheet
(in thousands)
March 31, December 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $97,431 $65,408
Receivables, net of allowance for
doubtful accounts 17,077 16,830
Deferred site rental receivable 9,291 9,307
Prepaid expenses and other current assets 42,790 37,811
Restricted cash 93,590 91,939
Total current assets 260,179 221,295
Restricted cash 4,484 3,814
Property and equipment, net of accumulated
depreciation 3,241,708 3,294,333
Goodwill 340,412 340,412
Deferred site rental receivable 90,646 87,392
Deferred financing costs and other assets,
net of accumulated amortization 193,327 184,071
$4,130,756 $4,131,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $12,953 $12,230
Accrued interest 7,464 8,281
Deferred rental revenues and other accrued
liabilities 132,959 148,703
Credit facility 295,000 295,000
Total current liabilities 448,376 464,214
Long-term debt, less current maturities 1,975,586 1,975,686
Deferred ground lease payable 122,746 118,747
Other liabilities 55,609 55,559
Total liabilities 2,602,317 2,614,206
Minority interests 25,267 26,792
Redeemable preferred stock 312,175 311,943
Stockholders' equity 1,190,997 1,178,376
$4,130,756 $4,131,317
Note: In accordance with the Indenture Agreement governing the Notes,
all rental cash receipts for the month are restricted and held by
the trustee. Amounts in excess of reserve balances as calculated
by the trustee are returned to the Company on the 15th of the
subsequent month.
Crown Castle International Corp.
Condensed Consolidated Statement of Cash flows
(in thousands)
Three Months Ended
March 31,
2006 2005
(As restated)
Cash flows from operating activities:
Net loss $(6,722) $(126,947)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation, amortization and accretion 72,091 70,187
Losses on purchases of long-term debt --- 82,587
Amortization of deferred financing
costs and discounts on long-term debt 2,064 1,494
Non-cash compensation charges 2,234 7,971
Asset write-down charges 335 436
Minority interests (911) (1,204)
Equity in losses and write-downs of
unconsolidated affiliates 2,609 2,791
(Income) loss from discontinued operations (5,657) 1,499
Amortization of interest rate swap payment 286 ---
Changes in assets and liabilities:
Increase (decrease) in accrued interest (817) (11,936)
Increase (decrease) in accounts payable 766 (5,398)
Increase (decrease) in deferred rental
revenues, deferred site rental receivable
and other liabilities (10,604) (7,628)
Increase (decrease) in receivables (365) 15,427
Increase (decrease) in inventories, prepaid
expenses and other assets (5,044) (2,238)
Net cash provided by (used for)
operating activities 50,265 27,041
Cash flows from investing activities:
Proceeds from investments and disposition
of property and equipment 611 4
Capital expenditures (22,066) (9,599)
Investments in unconsolidated affiliates
and other (1,000) (45)
Net cash provided by (used for)
investing activities (22,455) (9,640)
Cash flows from financing activities:
Proceeds from issuance of capital stock 9,340 3,319
Purchases and redemption of long-term debt --- (173,695)
Payments under revolving credit agreements --- (21,987)
Purchases of capital stock (3,030) (4,074)
Incurrence of financing costs (156) (3,550)
Net (increase) decrease in restricted cash (2,321) ---
Dividends on preferred stock (4,969) ---
Net cash used for financing activities (1,136) (199,987)
Effect of exchange rate changes on cash (308) (262)
Discontinued operations 5,657 (782)
Net increase (decrease) in cash and
cash equivalents 32,023 (183,630)
Cash and cash equivalents at beginning of period 65,408 566,707
Cash and cash equivalents at end of period $97,431 $383,077
Supplemental disclosure of cash flow
information:
Interest paid $29,847 $49,295
Income taxes paid 109 7,144
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
($ in thousands)
Quarter Ended 6/30/05
CCUSA CCAL EmB (A) CCIC
Revenues
Site Rental 134,104 13,305 --- 147,409
Services 19,082 1,736 --- 20,818
Total Revenues 153,186 15,041 --- 168,227
Operating Expenses
Site Rental 43,904 4,441 57 48,402
Services 13,479 924 --- 14,403
Total Operating Expenses 57,383 5,365 57 62,805
General & Administrative 20,736 3,256 --- 23,992
Operating Cash Flow 75,067 6,420 (57) 81,430
Corporate Development --- --- 795 795
Add: Non-Cash Compensation 1,695 107 61 1,863
Adjusted EBITDA 76,762 6,527 (791) 82,498
Quarter Ended 6/30/05
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 67% 67% N/M 67%
Services 29% 47% N/M 31%
Operating Cash Flow Margins 49% 43% N/M 48%
Adjusted EBITDA Margin 50% 43% N/M 49%
Quarter Ended 9/30/05
CCUSA CCAL EmB CCIC
Revenues
Site Rental 140,358 12,444 --- 152,802
Services 17,519 1,938 --- 19,457
Total Revenues 157,877 14,382 --- 172,259
Operating Expenses
Site Rental 46,272 4,314 85 50,671
Services 12,579 754 --- 13,333
Total Operating Expenses 58,851 5,068 85 64,004
General & Administrative 31,142 2,835 --- 33,977
Operating Cash Flow 67,884 6,479 (85) 74,278
Corporate Development --- --- 1,172 1,172
Add: Non-Cash Compensation 12,200 109 281 12,590
Adjusted EBITDA 80,084 6,588 (976) 85,696
Quarter Ended 9/30/05
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 67% 66% N/M 67%
Services 31% 61% N/M 31%
Operating Cash Flow Margins 45% 45% N/M 44%
Adjusted EBITDA Margin 52% 46% N/M 50%
Quarter Ended 12/31/05
CCUSA CCAL EmB CCIC
Revenues
Site Rental 143,933 11,513 --- 155,446
Services 21,798 1,382 --- 23,180
Total Revenues 165,731 12,895 --- 178,626
Operating Expenses
Site Rental 45,461 4,299 199 49,959
Services 14,693 733 --- 15,426
Total Operating Expenses 60,154 5,032 199 65,385
General & Administrative 22,042 2,861 --- 24,903
Operating Cash Flow 83,535 5,002 (199) 88,338
Corporate Development 194 --- 1,648 1,842
Add: Non-Cash Compensation 3,775 114 58 3,947
Adjusted EBITDA 87,116 5,116 (1,789) 90,443
Quarter Ended 12/31/05
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 68% 63% N/M 68%
Services 33% 47% N/M 33%
Operating Cash Flow Margins 50% 39% N/M 49%
Adjusted EBITDA Margin 53% 40% N/M 51%
Quarter Ended 3/31/06
CCUSA CCAL EmB CCIC
Revenues
Site Rental 150,138 11,759 --- 161,897
Services 18,982 1,786 --- 20,768
Total Revenues 169,120 13,545 --- 182,665
Operating Expenses
Site Rental 45,307 4,122 261 49,690
Services 12,717 1,069 --- 13,786
Total Operating Expenses 58,024 5,191 261 63,476
General & Administrative 20,200 3,963 --- 24,163
Operating Cash Flow 90,896 4,391 (261) 95,026
Corporate Development 358 --- 1,320 1,678
Add: Non-Cash Compensation 2,234 1,155 125 3,514
Adjusted EBITDA 92,772 5,546 (1,456) 96,862
Quarter Ended 3/31/06
CCUSA CCAL EmB CCIC
Gross Margins:
Site Rental 70% 65% N/M 69%
Services 33% 40% N/M 34%
Operating Cash Flow Margins 54% 32% N/M 52%
Adjusted EBITDA Margin 55% 41% N/M 53%
(A) EmB = Emerging Businesses
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
($ in thousands)
Quarter Ended
06/30/2005 09/30/2005 12/31/2005 03/31/2006
Net income (loss) (225,751) (25,536) (23,303) $(6,722)
Income (loss) from
discontinued
operations, net of tax (2,347) --- --- (5,657)
Minority interests (727) (834) (760) (911)
Credit (provision) for
income taxes 147 117 2,818 616
Interest expense,
amortization of deferred
financing costs 35,393 28,600 30,544 32,260
Interest and other income
(expense) 202,635 (617) (2,592) 1,336
Depreciation,
amortization
and accretion 70,730 70,215 69,986 72,091
Operating stock based
compensation charges 1,863 12,590 3,947 3,514
Asset write-down charges 555 1,161 773 335
Cumulative effect of change
in accounting principle --- --- 9,031 ---
Restructuring charges
(credits) --- --- --- ---
Adjusted EBITDA $82,498 $85,696 $90,443 $96,862
CCI FACT SHEET Q1 2006
$ in thousands
Q1 '05 Q1 '06 % Change
US
Site Rental Revenue $131,250 $150,138 14%
Ending Sites 10,606 11,073 4%
Australia
Site Rental Revenue $10,218 $11,759 15%
Ending Sites 1,388 1,385 0%
Emerging Businesses
Site Rental Revenue --- --- N/A
Ending Sites --- --- N/A
Consolidated
Site Rental Revenue $141,468 $161,897 14%
Ending Sites 11,994 12,458 4%
Ending Cash and Investments $383,077 $97,431*
Debt
Bank Debt $158,013 $295,000
Bonds $1,576,897 $1,975,586
6 1/4% & 8 1/4% Convertible
Preferred Stock $508,374 $312,175
Total Debt $2,243,284 $2,582,761
Leverage Ratios
Net Bank Debt + Bonds / EBITDA 4.4X 5.6X
Total Net Debt / EBITDA 6.1X 6.4X
Last Quarter Annnualized
Adjusted EBITDA $305,700 $387,448
*Excludes Restricted Cash of $98.1 million
SOURCE Crown Castle International Corp.
-0- 04/26/2006
/CONTACT: Ben 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
KS-CJ
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6767 04/26/2006 16:01 EDT http://www.prnewswire.com