Crown Castle International Reports Fourth Quarter and Full Year 2006 Results
HOUSTON, Feb. 8 /PRNewswire-FirstCall/ -- Crown Castle International Corp. (NYSE: CCI) today reported results for the quarter and year ended December 31, 2006. These results do not include the results of Global Signal Inc. ("Global Signal"), which merged into a subsidiary of Crown Castle on January 12, 2007.
Site rental revenue for the fourth quarter of 2006 increased $31.2 million, or 20.1%, to $186.7 million from $155.4 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 23.3% to $130.1 million, up $24.6 million in the fourth quarter of 2006 from the same period in 2005. Adjusted EBITDA for the fourth quarter of 2006 increased $26.1 million, or 28.8%, to $116.5 million, up from $90.4 million for the same period in 2005.
Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, increased from $55.5 million in the fourth quarter of 2005 to $67.5 million for the fourth quarter of 2006, up 21.7%, inclusive of approximately $15.6 million of additional interest expense in the fourth quarter of 2006 from incremental borrowings in 2006. Weighted average common shares outstanding decreased to 200.8 million for the fourth quarter of 2006 from 213.5 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 29.5% to $0.34 in the fourth quarter of 2006 compared to $0.26 in the fourth quarter of 2005.
Net loss was $6.3 million for the fourth quarter of 2006, inclusive of $4.7 million in losses from the retirement of debt, compared to a net loss of $23.3 million for the same period in 2005, inclusive of a $9.0 million charge from the cumulative effect of a change in accounting principle. Net loss after deduction of dividends on preferred stock was $11.5 million in the fourth quarter of 2006, inclusive of $4.7 million in losses from the retirement of debt, compared to a loss of $44.0 million for the same period last year, inclusive of a $9.0 million charge from the cumulative effect of a change in accounting principle, a $12.0 million loss on the redemption of the 8 1/4% Convertible Preferred Stock and dividends on the 8 1/4% Convertible Preferred Stock of $3.5 million. Fourth quarter 2006 net loss per share was $0.06, compared to a net loss per share of $0.21 in last year's fourth quarter.
Site rental revenue for the full year 2006 increased 16.7% to $696.7 million, up $99.6 million from $597.1 million for the full year 2005. Site rental gross margin for the full year 2006 increased 21.1% to $484.3 million, up $84.5 million from $399.8 million for the full year 2005. Adjusted EBITDA for the full year 2006 increased $92.4 million, or 27.6%, to $427.4 million, up from $335.1 million for the full year 2005.
Recurring cash flow increased $68.4 million, or 36.5%, to $255.8 million for the full year 2006, from $187.4 million for the full year 2005. Weighted average common shares outstanding decreased to 207.2 million for the full year 2006, from 217.8 million for the full year 2005. Recurring cash flow per share increased by 43% to $1.23 for the full year 2006 compared to $0.86 for the full year 2005.
Net loss was $41.9 million for the full year 2006, inclusive of $5.8 million in losses from the retirement of debt and inclusive of $5.7 million of income from discontinued operations, compared to net loss of $401.5 million for the full year 2005, inclusive of $283.8 million in losses from the retirement of debt and a $9.0 million charge from the cumulative effect of a change in accounting principle. Net loss after deduction of dividends on preferred stock was $62.7 million for the full year 2006, inclusive of $5.8 million in losses from the retirement of debt and inclusive of $5.7 million of income from discontinued operations, compared to net loss of $450.9 million in the full year 2005, inclusive of $283.8 million in losses from the retirement of debt, $0.8 million of income from discontinued operations, a $9.0 million charge from the cumulative effect of a change in accounting principle, a $12.0 million loss on the redemption of the 8 1/4% Convertible Preferred Stock and dividends on the 8 1/4% Convertible Preferred Stock of $16.2 million. Full year 2006 net loss per share was $0.30 compared to net loss per share of $2.07 for the full year 2005.
"We are pleased to complete 2006 with another quarter of strong results," stated John P. Kelly, President and Chief Executive Officer of Crown Castle. "We grew recurring cash flow per share for the fourth quarter and full year 2006 by approximately 30% and 43%, respectively, which exceeds our long-term target of 20% to 25% annual growth in recurring cash flow per share. Also, on January 12, 2007, we closed the Global Signal merger. We were excited to have finalized the combination of the companies in a relatively short time-frame, and we look forward to integrating the Global Signal assets in the coming year. Further, we expect this extraordinary combination to create significant value for our customers and shareholders."
A presentation providing additional information about Crown Castle will be posted to the investor relations section of Crown Castle's website at http://investor.crowncastle.com . Crown Castle has scheduled a conference call for Friday, February 9, 2007 at 10:30 a.m. eastern time to discuss the presentation along with its fourth quarter and full year 2006 results.
SEGMENT RESULTS
US site rental revenue for the fourth quarter of 2006 increased $28.9 million, or 20.1%, to $172.8 million, compared to fourth quarter 2005 US site rental revenue of $143.9 million. US site rental gross margin increased 22.8% to $120.9 million, up $22.4 million in the fourth quarter of 2006 from the same period in 2005. US site rental revenue and site rental gross margin were positively impacted by approximately $3.5 million and $3.1 million, respectively, from out of run-rate items.
Australia site rental revenue for the fourth quarter of 2006 increased $2.4 million, or 20.5%, to $13.9 million, compared to $11.5 million in the fourth quarter of 2005. Australia site rental gross margin for the fourth quarter of 2006 increased $2.8 million, or 39.0%, to $10.0 million, compared to fourth quarter of 2005 Australia site rental gross margin of $7.2 million.
INVESTMENTS AND LIQUIDITY
During the fourth quarter of 2006, Crown Castle invested approximately $44.9 million in capital expenditures, comprised of $2.9 million of sustaining capital expenditures and $42 million of revenue generating capital expenditures, of which $10.4 million was spent on existing sites, $11.9 million on land purchases and $19.7 million on the construction of new sites.
During the full year 2006, Crown Castle invested approximately $124.8 million in capital expenditures, comprised of $9.3 million of sustaining capital expenditures and $115.5 million of revenue generating capital expenditures, of which $36.4 million was spent on existing sites, $27.5 million on land purchases and $51.6 million on the construction of new sites. Also, during 2006, Crown Castle purchased 15.9 million of its common shares using $518.0 million in cash, reducing its post-merger common shares outstanding by approximately 5%.
On January 12, 2007, Crown Castle closed its acquisition of Global Signal. On January 26, 2007, Crown Castle acquired an additional 17.7 million of its common shares for $600 million in cash to reduce common shares outstanding by approximately 6%. Common shares outstanding at December 31, 2006, pro forma for the Global Signal merger and the common shares purchased on January 26, 2007, were 282.5 million.
"We are very pleased with the strong operating results we have achieved and the financing activities that we have completed," stated Ben Moreland, Chief Financial Officer of Crown Castle. "Based on our continuing belief in the long-term growth prospects for our business, since 2003, we have invested approximately $2.0 billion of cash in purchases of our securities to reduce fully diluted common shares by approximately 83.8 million, which we believe will further our goal of maximizing recurring cash flow per share."
On November 29, 2006, Crown Castle issued $1.55 billion of Senior Secured Tower Revenue Notes Series 2006-1 through certain of Crown Castle's subsidiaries as additional debt securities under the existing indenture pursuant to which the Senior Secured Tower Revenue Notes Series 2005-1 were issued in 2005. The weighted average fixed interest rate of all the notes is 5.7%, with approximately 79% of such notes rated investment grade. Proceeds from the notes were used to repay approximately $1.0 billion of the previously outstanding 2006 Credit Facility and the remainder was used to fund the cash consideration of the acquisition of Global Signal.
On January 26, 2007, Crown Castle Operating Company ("CCOC"), a subsidiary of Crown Castle, borrowed $600 million under a senior secured term loan under CCOC's existing credit facility dated January 9, 2007. The borrowings were used to purchase 17.7 million shares of Crown Castle common shares.
OUTLOOK
The following Outlook tables are based on current expectations and assumptions. The Outlook tables include the expected results of the Global Signal merger from January 12, 2007 to December 31, 2007 and assume a US dollar to Australian dollar exchange rate of 0.75 US dollars to 1.00 Australian dollars. If the merger had closed on or before January 1, 2007, Crown Castle would have expected Adjusted EBITDA to be approximately $10 million higher for the first quarter and full year 2007, respectively, than the Outlook tables provided below.
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 following tables set forth Crown Castle's current Outlook for the first quarter of 2007 and full year 2007:
(in millions, except
per share amounts) First Quarter 2007 Full Year 2007
Site rental revenue $295 to $300 $1,265 to $1,280
Site rental cost of operations $103 to $108 $440 to $450
Site rental gross margin $189 to $194 $820 to $830
Adjusted EBITDA $162 to $167 $735 to $750
Interest expense and amortization
of deferred financing costs
(inclusive of approximately
$5.6 million and $23 million for
Q1 2007 and FY 2007, respectively,
from non-cash expense) $83 to $85 $348 to $353
Sustaining capital expenditures $6 to $8 $21 to $25
Recurring cash flow $71 to $76 $364 to $374
Net loss after deduction of
dividends on preferred stock $(84) to $(54) $(230) to $(124)
Net loss per share* $(0.30) to $(0.19) $(0.81) to $(0.44)
* Based on the sum of shares outstanding as of December 31, 2006 of
202.1 million plus the shares issued in the Global Signal merger of
98.1 million less the purchase of 17.7 million shares in January 2007
for a total of 282.5 million shares outstanding.
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Friday, February 9, 2007, at 10:30 a.m. eastern time to discuss the fourth quarter and full year 2006 results, Crown Castle's Outlook and the aforementioned investor presentation providing additional information about Crown Castle. Please dial 303-205-0044 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 Friday, February 9, 2007 through 11:59 p.m. eastern time on Friday, February 16, 2007 and may be accessed by dialing 303-590-3000 using passcode 11081606#. 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. Crown Castle offers significant wireless communications coverage to 91 of the top 100 US markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and over 1,300 wireless communication sites in the US and Australia, respectively. For more information on Crown Castle, please 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, stock-based compensation for those employees directly related
to U.S. tower operations, and resulting impact on site rental gross margins is
as follows:
For the For the
(in thousands) Three Months Ended Twelve Months Ended
December 31, 2006 December 31, 2006
Non-cash portion of site
rental revenue:
Amounts attributable to
rent-free periods $1,779 $6,829
Amounts attributable to
straight-line recognition
of fixed escalations 3,542 13,667
5,321 20,496
Non-cash portion of ground
lease expense:
Amounts attributable to
straight-line recognition of
fixed escalations 2,792 15,812
Non-cash stock-based
compensation charges 58 174
Non-cash impact on site
rental gross margin: $2,471 $4,510
Non-GAAP Financial Measures
This press release includes presentations of Adjusted EBITDA and recurring cash flow, which are non-GAAP financial measures.
Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, integration costs, depreciation, amortization and accretion, losses on purchases and redemptions of debt, interest and other income (expense), interest expense and amortization of deferred financing costs, benefit (provision) for income taxes, minority interests, cumulative effect of change in accounting principle, income (loss) from discontinued operations, and stock-based compensation charges. Adjusted EBITDA is not intended as an alternative measure of cash flow from operations or operating results (as determined in accordance with U.S. 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). Recurring cash flow per share is not intended to be an alternative measure of earnings per share.
Adjusted EBITDA and recurring cash flow are presented as additional information because management believes these measures are useful indicators of the financial performance of our core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. Our measures of Adjusted EBITDA and recurring cash flow may not be comparable to similarly titled measures of other companies, including companies in the tower industry and in the historical financial statements of Global Signal. 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 and years ended December 31, 2006 and December 31, 2005 are
computed as follows:
For the For the
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2006 2005 2006 2005
(in thousands, except
per share amounts)
Net income (loss) $(6,275) $(23,303) $(41,893) $(401,537)
Adjustments to increase
(decrease) net income
(loss):
Restructuring charges
(credits) (inclusive
of stock-based
compensation charges) (391) --- (391) 8,477
Asset write-down charges 140 773 2,945 2,925
Integration costs
(inclusive of
stock-based
compensation charges) 1,503 --- 1,503 ---
Depreciation,
amortization and
accretion 71,618 69,986 285,244 281,118
Losses on purchases
and redemption of debt 4,666 --- 5,843 283,797
Interest and other
income (expense) (2,891) (2,592) 1,629 (1,354)
Interest expense and
amortization of
deferred financing
costs 46,163 30,544 162,328 133,806
Benefit (provision)
for income taxes (855) 2,817 843 3,225
Minority interests (266) (760) (1,666) (3,525)
Cumulative effect of
change in accounting
principle --- 9,031 --- 9,031
Income (loss) from
discontinued operations,
net of tax --- --- (5,657) (848)
Stock-based compensation
charges (exclusive of
charges included in
restructuring charges
(credits) and
integration costs) 3,095 3,947 16,718 19,947
Adjusted EBITDA $116,507 $90,443 $427,446 $335,062
Less: Interest expense
and amortization of
deferred financing costs 46,163 30,544 162,328 133,806
Less: Sustaining capital
expenditures 2,852 4,449 9,306 13,845
Recurring cash flow $67,492 $55,450 $255,812 $187,411
Weighted average common
shares outstanding 200,763 213,532 207,245 217,759
Recurring cash flow
per share $0.34 $0.26 $1.23 $0.86
Adjusted EBITDA and recurring cash flow for the quarter ending March 31, 2007 and the year ending December 31, 2007 are forecasted as follows:
Q1 2007 Full Year 2007
(in millions) Outlook Outlook
Net income (loss) $(79) to $(49) $(210) to $(104)
Adjustments to increase (decrease)
net income (loss):
Restructuring charges (credits)
(inclusive of stock-based
compensation charges) $--- to $--- $--- to $---
Asset write-down charges $--- to $2 $5 to $10
Integration costs (inclusive of
stock-based compensation charges) $10 to $12 $24 to $33
Depreciation, amortization
and accretion $128 to $138 $510 to $550
Losses on purchases and
redemptions of debt $--- to $--- $--- to $---
Interest and other income (expense) $--- to $2 $2 to $5
Interest expense and amortization
of deferred financing costs
(inclusive of approximately
$5.6 million and $23 million for
Q1 2007 and FY 2007, respectively,
from non-cash expense) $83 to $85 $348 to $353
Benefit (provision) for income taxes $(5) to $(9) $(20) to $(45)
Minority interests $--- to $(1) $--- to $(2)
Income (loss) from discontinued
operations, net of tax $--- to $--- $--- to $---
Stock-based compensation charges
(exclusive of amounts included in
restructuring charges (credits) and
integration costs) $5 to $7 $12 to $14
Adjusted EBITDA $162 to $167 $735 to $750
Less: Interest expense and amortization
of deferred financing costs (inclusive
of approximately $5.6 million and
$23 million for Q1 2007 and FY 2007,
respectively, from non-cash expense) $83 to $85 $348 to $353
Less: Sustaining capital expenditures $6 to $8 $21 to $25
Recurring cash flow $71 to $76 $364 to $374
Other Calculations:
Sustaining capital expenditures for the quarters and years ended December 31, 2006 and December 31, 2005 is computed as follows:
For the For the
Three Months Ended Twelve Months Ended
(in thousands) Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2006 2005 2006 2005
Capital Expenditures $44,894 $25,879 $124,820 $64,678
Less: Revenue enhancing
on existing sites 10,419 8,766 36,378 22,690
Less: Land purchases 11,905 5,791 27,499 9,777
Less: New site
construction 19,718 6,873 51,637 18,366
Sustaining capital
expenditures $2,852 $4,449 $9,306 $13,845
Site rental gross margin for the quarter ending March 31, 2007 and for the year ending December 31, 2007 is forecasted as follows:
(in millions) Q1 2007 Full Year 2007
Outlook Outlook
Site rental revenue $295 to $300 $1,265 to $1,280
Less: Site rental cost of operations $103 to $108 $440 to $450
Site rental gross margin $189 to $194 $820 to $830
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) integration of the Global Signal assets, including the timing thereof, (ii) the potential impact and benefits of the Global Signal merger, (iii) the growth of our business, (iv) currency exchange rates, (v) site rental revenue, (vi) site rental cost of operations, (vii) site rental gross margin, (viii) Adjusted EBITDA, (ix) interest expense and amortization of deferred financing costs, (x) sustaining capital expenditures, (xi) recurring cash flow (including recurring cash flow per share) and (xii) 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:
* The Global Signal merger may cause disruptions in our business, which
may have an adverse effect on our business and financial results.
* The assets of Global Signal acquired in the merger may not perform as
expected, which may have an adverse effect on our business, financial
condition or results of operations.
* The integration of Global Signal is expected to result in substantial
expenses and may present significant challenges.
* 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 (including reducing
demand for our towers and network services) 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, wireless data services 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 debt 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. In addition, Modeo's business may require additional
financing which may not be available.
* FiberTower's business has certain risk factors different from our core
tower business (including an unproven business model and the Risk
Factors set forth in its SEC filings) and may produce results that are
less than anticipated resulting in a write off of all or part of our
investment in FiberTower. In addition, FiberTower's business may
require additional financing which may not be available.
* 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.
* Sales or issuances of a substantial number of shares of our common
stock may adversely affect the market price of our common stock.
* 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.
* 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.
Crown Castle International Corp.
Condensed Consolidated Statement of Operations
And Other Financial Data
(in thousands, except per share data)
Three Months Ended Years Ended
December 31, December 31,
2006 2005 2006 2005
Net revenues:
Site rental $186,672 $155,446 $696,724 $597,125
Network services and other 24,169 23,180 91,497 79,634
Total net revenues 210,841 178,626 788,221 676,759
Costs of operations
(exclusive of depreciation,
amortization and accretion):
Site rental 56,576 49,959 212,454 197,355
Network services and other 16,106 15,426 60,507 54,630
Total costs of operations 72,682 65,385 272,961 251,985
General and administrative 22,805 24,903 95,751 105,361
Corporate development 1,942 1,842 8,781 4,298
Restructuring charges (credits) (391) --- (391) 8,477
Asset write-down charges 140 773 2,945 2,925
Integration costs 1,503 --- 1,503 ---
Depreciation, amortization
and accretion 71,618 69,986 285,244 281,118
Operating income (loss) 40,542 15,737 121,427 22,595
Losses on purchases and
redemptions of debt (4,666) --- (5,843) (283,797)
Interest and other income
(expense) 2,891 2,592 (1,629) 1,354
Interest expense and
amortization of deferred
financing costs (46,163) (30,544) (162,328) (133,806)
Income (loss) from continuing
operations before income taxes
and minority interests (7,396) (12,215) (48,373) (393,654)
Benefit (provision)
for income taxes 855 (2,817) (843) (3,225)
Minority interests 266 760 1,666 3,525
Income (loss) from continuing
operations (6,275) (14,272) (47,550) (393,354)
Income (loss) from discontinued
operations, net of tax --- --- 5,657 848
Cumulative effect of change
in accounting principle --- (9,031) --- (9,031)
Net income (loss) (6,275) (23,303) (41,893) (401,537)
Dividends on preferred stock,
net of losses on purchases
of preferred stock (5,202) (20,706) (20,806) (49,356)
Net income (loss) after deduction
of dividends on preferred
stock $(11,477) $(44,009) $(62,699) $(450,893)
Per common share - basic
and diluted:
Income (loss) from continuing
operations $(0.06) $(0.17) $(0.33) $(2.03)
Income (loss) from
discontinued operations --- --- 0.03 ---
Cumulative effect of change
in accounting principle --- (0.04) --- (0.04)
Net income (loss) $(0.06) $(0.21) $(0.30) $(2.07)
Weighted average common shares
outstanding - basic
and diluted 200,763 213,532 207,245 217,759
Adjusted EBITDA $116,507 $90,443 $427,446 $335,062
Stock-based compensation charges:
Site rental cost of operations $58 $93 $174 $715
Network services and other
cost of operations 58 44 198 349
General and administrative 3,020 3,752 14,684 18,483
Corporate development (41) 58 1,662 400
Total operating stock-based
compensation 3,095 3,947 16,718 19,947
Restructuring stock-based
compensation --- --- --- 6,424
Total stock-based
compensation $3,095 $3,947 $16,718 $26,371
Crown Castle International Corp.
Condensed Consolidated Balance Sheet
(in thousands)
December 31, December 31,
2006 2005
ASSETS
Current assets:
Cash and cash equivalents $592,716 $65,408
Restricted cash 115,503 91,939
Receivables, net of allowance
for doubtful accounts 30,774 16,830
Prepaid expenses and other current assets 61,034 47,118
Total current assets 800,027 221,295
Restricted cash 5,000 3,814
Deferred site rental receivable 98,527 87,392
Available-for-sale securities 154,955 ---
Property and equipment, net 3,246,446 3,294,333
Goodwill 391,448 340,412
Other intangible assets, net 225,295 70,872
Deferred financing costs and other assets,
net of accumulated amortization 84,470 113,199
$5,006,168 $4,131,317
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $18,545 $12,230
Deferred rental revenues
and other accrued liabilities 182,250 156,984
Short-term debt and current maturities
of long-term debt --- 295,000
Total current liabilities 200,795 464,214
Long-term debt, less current maturities 3,513,890 1,975,686
Other liabilities 193,279 174,306
Total liabilities 3,907,964 2,614,206
Minority interests 29,052 26,792
Redeemable preferred stock 312,871 311,943
Stockholders' equity 756,281 1,178,376
$5,006,168 $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)
Twelve Months Ended
December 31,
2006 2005
Cash flows from operating activities:
Net income (loss) $(41,893) $(401,537)
Adjustments to reconcile net income (loss)
to net cash provided by (used for) operating
activities:
Depreciation, amortization and accretion 285,244 281,118
Losses on purchases and redemptions of debt 5,843 283,797
Other adjustments 31,440 46,445
Changes in assets and liabilities,
excluding the effects of acquisitions:
Increase (decrease) in liabilities 34,835 (1,111)
Decrease (increase) in assets (39,710) (3,800)
Net cash provided by (used for)
operating activities 275,759 204,912
Cash flows from investing activities:
Proceeds from investments and disposition
of property and equipment 2,282 2,827
Acquisition of assets (303,611) (147,255)
Capital expenditures (124,820) (64,678)
Investments, loans and other (6,350) (55,034)
Net cash provided by (used for)
investing activities (432,499) (264,140)
Cash flows from financing activities:
Proceeds from issuance of long-term debt 2,550,000 1,900,000
Proceeds from issuance of capital stock 45,540 59,054
Principal payments on long-term debt (1,000,585) ---
Purchases and redemption of long-term debt (12,108) (1,848,222)
Purchases of common stock (518,028) (314,889)
Purchases and redemption of preferred stock --- (200,000)
Borrowing under revolving credit agreements --- 295,000
Payments under revolving credit agreements (295,000) (180,000)
Incurrence of financing costs (36,918) (32,405)
Initial funding of restricted cash (4,321) (48,873)
Net decrease (increase) in restricted cash (20,429) (46,880)
Cash flow hedges receipts (payments) (9,360) (6,797)
Dividends on preferred stock (19,877) (21,624)
Net cash provided by (used for) financing
activities 678,914 (445,636)
Effect of exchange rate changes on cash (523) (408)
Discontinued operations 5,657 3,973
Net increase (decrease) in cash
and cash equivalents 527,308 (501,299)
Cash and cash equivalents at beginning of period 65,408 566,707
Cash and cash equivalents at end of period $592,716 $65,408
Supplemental disclosure of cash flow information:
Interest paid $145,528 $158,165
Income taxes paid 3,378 (1,864)
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 3/31/06
CCUSA CCAL EB 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: Stock-Based 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 EB 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%
Quarter Ended 6/30/06
CCUSA CCAL EB CCIC
Revenues
Site Rental 154,491 14,669 --- 169,160
Services 22,696 1,920 --- 24,616
Total Revenues 177,187 16,589 --- 193,776
Operating Expenses
Site Rental 46,310 4,175 442 50,927
Services 14,867 1,013 --- 15,880
Total Operating Expenses 61,177 5,188 442 66,807
General & Administrative 23,026 2,799 --- 25,825
Operating Cash Flow 92,984 8,602 (442) 101,144
Corporate Development 489 --- 2,197 2,686
Add: Stock-Based Compensation 4,835 171 374 5,380
Adjusted EBITDA 97,330 8,773 (2,265) 103,838
Quarter Ended 6/30/06
CCUSA CCAL EB CCIC
Gross Margins:
Site Rental 70% 72% N/M 70%
Services 34% 47% N/M 35%
Operating Cash Flow Margins 52% 52% N/M 52%
Adjusted EBITDA Margin 55% 53% N/M 54%
Quarter Ended 9/30/06
CCUSA CCAL EB CCIC
Revenues
Site Rental 166,620 12,375 --- 178,995
Services 19,994 1,950 --- 21,944
Total Revenues 186,614 14,325 --- 200,939
Operating Expenses
Site Rental 50,484 4,151 626 55,261
Services 14,044 691 --- 14,735
Total Operating Expenses 64,528 4,842 626 69,996
General & Administrative 20,363 2,595 --- 22,958
Operating Cash Flow 101,723 6,888 (626) 107,985
Corporate Development 518 --- 1,957 2,475
Add: Stock-Based Compensation 3,710 254 765 4,729
Adjusted EBITDA 104,915 7,142 (1,818) 110,239
Quarter Ended 9/30/06
CCUSA CCAL EB CCIC
Gross Margins:
Site Rental 70% 66% N/M 69%
Services 30% 65% N/M 33%
Operating Cash Flow Margins 55% 48% N/M 54%
Adjusted EBITDA Margin 56% 50% N/M 55%
Quarter Ended 12/31/06
CCUSA CCAL EB CCIC
Revenues
Site Rental 172,801 13,871 --- 186,672
Services 22,636 1,533 --- 24,169
Total Revenues 195,437 15,404 --- 210,841
Operating Expenses
Site Rental 51,899 3,840 837 56,576
Services 15,246 860 --- 16,106
Total Operating Expenses 67,145 4,700 837 72,682
General & Administrative 19,935 2,870 --- 22,805
Operating Cash Flow 108,357 7,834 (837) 115,354
Corporate Development 454 --- 1,488 1,942
Add: Stock-Based Compensation 3,026 242 (173) 3,095
Adjusted EBITDA 110,929 8,076 (2,498) 116,507
Quarter Ended 12/31/06
CCUSA CCAL EB CCIC
Gross Margins:
Site Rental 70% 72% N/M 70%
Services 33% 44% N/M 33%
Operating Cash Flow Margins 55% 51% N/M 55%
Adjusted EBITDA Margin 57% 52% N/M 55%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
3/31/2006 6/30/2006 9/30/2006 12/31/2006
Net income (loss) $(6,722) $(13,335) $(15,561) $(6,275)
Restructuring charges (credits) --- --- --- (391)
Asset write-down charges 335 1,522 948 140
Integration costs --- --- --- 1,503
Depreciation, amortization
and accretion 72,091 69,374 72,161 71,618
Losses on purchases
and redemptions of debt --- 740 437 4,666
Interest and other income
(expense) 1,336 2,199 985 (2,891)
Interest expense and
amortization of deferred
financing costs 32,260 37,455 46,450 46,163
Benefit (provision)
for income taxes 616 507 575 (855)
Minority interests (911) (4) (485) (266)
Cumulative effect of change
in accounting principle --- --- --- ---
Income (loss) from
discontinued operations,
net of tax (5,657) --- --- ---
Stock-based compensation
charges 3,514 5,380 4,729 3,095
Adjusted EBITDA $96,862 $103,838 $110,239 $116,507
CCI FACT SHEET Q4 2005 to Q4 2006
$ in thousands
%
Q4 '05 Q4 '06 Change
CCUSA
Site Rental Revenue $143,933 $172,801 20%
Ending Sites 11,074 11,525 4%
CCAL
Site Rental Revenue $11,513 $13,871 20%
Ending Sites 1,385 1,387 0%
Emerging Businesses
Site Rental Revenue $--- --- N/A
Ending Sites --- --- N/A
TOTAL CCIC
Site Rental Revenue $155,446 $186,672 20%
Ending Sites 12,459 12,912 4%
Ending Cash and Cash Equivalents $65,408 * $592,716 *
Debt
Bank Debt $295,000 $0
Bonds and Notes $1,975,686 $3,513,890
6 1/4% Convertible Preferred Stock $311,943 $312,871
Total Debt $2,582,629 $3,826,761
Leverage Ratios
Net Bank Debt / EBITDA 0.6X N/A
Net Bank Debt + Bonds / EBITDA 6.1X 6.3X
Total Net Debt / EBITDA 7.0X 6.9X
Last Quarter Annualized Adjusted
EBITDA $361,772 $466,028
*Excludes Restricted Cash
Contacts: Ben Moreland, CFO
Jay Brown, Treasurer
Crown Castle International Corp.
713-570-3000
SOURCE Crown Castle International Corp.
-0- 02/08/2007
/CONTACT: Ben Moreland, CFO, or Jay Brown, Treasurer, both of Crown
Castle International Corp., +1-713-570-3000/
/Web site: http://www.crowncastle.com
http://investor.crowncastle.com /
(CCI)
CO: Crown Castle International Corp.
ST: Texas
IN: CPR TLS
SU: ERN ERP CCA
GN-CT
-- DATH020 --
3435 02/08/2007 16:09 EST http://www.prnewswire.com