Crown Castle International Reports Fourth Quarter and Year-End Results
HOUSTON, March 29 /PRNewswire-FirstCall/ -- Crown Castle International Corp. (NYSE: CCI) today reported results for the fourth quarter ended December 31, 2004.
Site rental revenue for the fourth quarter of 2004 increased $12.3 million, or 9.6%, to $139.5 million from $127.3 million for the same period in the prior year. Operating loss improved to $10.9 million in the fourth quarter of 2004 from a loss of $15.9 million in the fourth quarter of 2003.
Adjusted EBITDA for the fourth quarter of 2004 increased $10.9 million, or 17.6%, to $72.9 million, up from $62.0 million for the same period in 2003. Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, was $28.5 million for the fourth quarter of 2004. For the fourth quarter of 2004, total capital expenditures were $14.1 million, comprised of $3.8 million of sustaining capital expenditures and $10.3 million of revenue generating capital expenditures.
Net loss was $88.1 million for the fourth quarter of 2004, inclusive of $39.4 million in losses from the retirement of debt, compared to a net loss of $162.2 million for the same period in 2003, inclusive of $73.6 million of losses from the retirement of debt and preferred securities. Net loss after deduction of dividends on preferred stock was $97.9 million in the fourth quarter of 2004, compared to a loss of $172.2 million for the same period last year. Fourth quarter net loss per share was $(0.44) compared to a net loss per share of $(0.79) in last year's fourth quarter.
Site rental revenue for the full year 2004 increased $54.7 million, or 11.3%, to $537.5 million from $482.7 million for the full year 2003. Operating loss improved $48.2 million to a loss of $27.2 million for the full year 2004 from a loss of $75.4 million for the full year 2003.
Adjusted EBITDA for the full year 2004 increased $45.1 million, or 19.1%, to $281.3 million, up from $236.1 million in 2003. Recurring cash flow was $64.6 million for the full year 2004. For the full year 2004, total capital expenditures were $43.3 million, comprised of $9.8 million of sustaining capital expenditures and $33.5 million of revenue generating capital expenditures.
Net loss from continuing operations was $306.9 million for the full year 2004, inclusive of $63.8 million in losses from the retirement of debt, compared to a net loss from continuing operations of $464.8 million for the same period in 2003, inclusive of $119.4 million of losses from the retirement of debt and preferred securities. Net income was $235.1 million for the full year 2004, inclusive of $542.0 million in income from discontinued operations and $63.8 million in losses from the retirement of debt, compared to a net loss of $454.9 million for the same period in 2003, inclusive of $10.5 million in income from discontinued operations and $119.4 million in losses from the retirement of debt and preferred securities. Net income after deduction of dividends on preferred stock was $196.5 million in the full year 2004, inclusive of $542.0 million in income from discontinued operations and $63.8 million in losses from the retirement of debt, compared to a loss of $510.8 million for the same period last year inclusive of $10.5 million in income from discontinued operations and $121.0 million in losses from the retirement of debt and preferred securities. Full year 2004 net income per share was $0.89, inclusive of $2.45 per share in income from discontinued operations, compared to a loss per share of $(2.36) for full year 2003, inclusive of $0.05 per share in income from discontinued operations.
OPERATING RESULTS
US site rental revenue for the fourth quarter of 2004 increased $10.5 million, or 8.9%, to $128.8 million, up from $118.3 million for the same period in 2003. US site rental gross margin, defined as site rental revenue less site rental cost of operations, increased 13.6% to $85.6 million, up $10.3 million in the fourth quarter of 2004 from the same period in 2003. Australia site rental revenue for the fourth quarter of 2004 increased $1.7 million, or 19.0%, to $10.7 million, up from $9.0 million for the same period in 2003. Australia site rental gross margin increased 14% to $6.1 million, up $0.7 million in the fourth quarter of 2004 from the same period in 2003. On a consolidated basis, site rental gross margin increased 13.6% to $91.6 million, up $11.0 million in the fourth quarter of 2004 from the same period in 2003.
"We are pleased with the significant recurring revenue growth generated in 2004," stated John P. Kelly, President and Chief Executive Officer of Crown Castle. "US site rental revenue increased approximately $4,100 per site over the past year to an annualized level of approximately $48,600 per site at year end. While our 2005 outlook is currently based on a lower level of new leasing activity than we achieved in 2004, we continue to see positive signs from our customers in the US, which may result in additional revenue. Further, as of January 1, 2005, more than 95% of Crown Castle's 2005 outlook for site rental revenue was under contract, demonstrating the inherent predictability of the tower business. I am very pleased with the degree to which we exceeded our original 2004 financial targets and look forward to further financial and operational accomplishments in 2005."
"We continue to focus our efforts on maximizing recurring cash flow per share and exploring opportunities to refinance a significant portion of our indebtedness," stated Ben Moreland, Crown Castle's Chief Financial Officer. "While there can be no assurances that we will be successful in completing any such refinancing, we continue to be optimistic that we can lower the average interest rate of our debt and increase the flexibility of our investment options through such a refinancing. If we are able to achieve a refinancing, we would expect to have increased flexibility to invest our cash flow in those investments that we believe will maximize returns to our shareholders, which may include the purchase of our own securities. We hope to complete these refinancing activities during the second quarter."
IMPACT OF LEASE ACCOUNTING CHANGES
As previously announced, Crown Castle reviewed certain non-cash items relating to its lease accounting practices as a result of a public letter issued by the SEC to the American Institute of Certified Public Accountants on February 7, 2005 clarifying the interpretation of existing accounting literature applicable to certain leases and leasehold improvements. As a result of this review, Crown Castle adjusted its method of accounting for tenant leases, ground leases and depreciation. The corrections were non-cash adjustments resulting in increases to site rental revenue, ground rent expense (a component of site rental cost of operations) and depreciation expense. The adjustments did not affect historical or future cash flow or the timing of payments under related leases. Moreover, the corrections did not have any impact on cash balances, compliance with any financial covenant or debt instrument, or the current economic value of Crown Castle's leaseholds and its tower assets.
All prior period financial information discussed above has been restated to reflect the restatement. The net impacts of the changes in our lease accounting on site rental revenue, site rental cost of operations and Adjusted EBITDA in 2003 and 2004 are set forth on the following tables* (in millions):
Site Rental Revenue Q1 '03 Q2'03 Q3'03 Q4'03 2003
US $0.6 $0.6 $0.6 $0.6 $2.4
Australia 0.9 1.0 1.0 1.1 4.1
Total 1.6 1.6 1.7 1.8 6.5
Site Rental Cost of Operations
US 3.6 3.6 3.6 3.6 14.5
Australia 0.4 0.5 0.5 0.5 1.9
Total 4.1 4.1 4.1 4.1 16.4
Impact to Adjusted EBITDA (2.5) (2.5) (2.4) (2.4) (9.8)
9 months ended
September
Site Rental Revenue Q1 '04 Q2'04 Q3'04 2004
US $0.2 $0.2 $0.2 $0.7
Australia 1.0 0.9 0.9 2.8
Total 1.2 1.1 1.1 3.5
Site Rental Cost of Operations
US 3.2 3.2 3.2 9.5
Australia 0.4 0.4 0.4 1.2
Total 3.6 3.6 3.6 10.7
Impact to Adjusted EBITDA (2.4) (2.4) (2.4) (7.2)
* Columns and rows may not sum due to rounding
The impact of the changes in our lease accounting in our reported fourth quarter 2004 results, as compared to the methodology used to prepare our fourth quarter 2004 Outlook, was an increase of $1.8 million in site rental revenue ($0.8 million in the US and $1.0 million in Australia), an increase of $3.8 million in site rental cost of operations ($3.4 million in the US and $0.4 million in Australia) and a net decrease in Adjusted EBITDA of $2.0 million.
SUMMARY OF NON-CASH AMOUNTS IN TOWER GROSS MARGIN
In accordance with applicable accounting standards, we recognize 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. Some agreements provide for rent-free periods at the beginning of the lease term, while others call for rent to be prepaid for some period. If 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 our site rental gross margins is as
follows:
Year Ended
December 31,
Q4 2004 2004
(dollars in millions)
Non-Cash portion of site rental revenues:
Amounts attributable to rent-free periods $1.6 $6.5
Amounts attributable to straight-line
recognition of fixed escalations 2.8 11.9
$4.4 $18.4
Non-Cash portion of ground lease expense:
Amounts attributable to straight-line
recognition of fixed escalations $4.6 17.6
Non-Cash impact on site rental gross margins: $(0.2) $0.8
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 following tables set forth Crown Castle's current outlook:
First Quarter Full Year
2005 2005
(dollars in millions)
Site Rental Revenue $138 to 140 $575 to 585
Site Rental Cost of Operations $46 to 48 $185 to 195
Site Rental Gross Margin $91 to 93 $385 to 400
Adjusted EBITDA $74 to 76 $310 to 320
Interest Expense $36 to 37 $108 to 118
Sustaining Capital Expenditures $2 to 3 $10 to 14
Recurring Cash Flow $35 to 37 $185 to 200
Revenue Generating Capital Expenditures:
Revenue Enhancing on Existing Sites $5 to 7 $30 to 40
Land Purchases $0 to 1 $5 to 10
New Site Construction $4 to 5 $5 to 10
Total Revenue Generating Capital Expenditures $9 to 13 $40 to 60
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Wednesday, March 30, 2005 at 11:30 a.m. eastern time to discuss full year and year-end results and Crown Castle's Outlook. Please dial 303-205-0033 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 through April 8, 2005 and may be accessed by calling 303-590-3000 and using pass code 11027228#. 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 68 of the top 100 United States markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 10,600 and over 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit: http://www.crowncastle.com .
Non-GAAP Financial Measures:
This press release includes presentations of Adjusted EBITDA 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 from discontinued operations, minority interests, provision for income taxes, interest expense, amortization of deferred financing costs and dividends on preferred stock, interest and other income (expense), depreciation, amortization and accretion, non-cash general and administrative compensation charges, asset write-down charges and restructuring charges (credits). Adjusted EBITDA is not intended as an alternative measure of operating results (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:
Three Months Ended Twelve Months Ended
December 31, December 31,
2004 2003 2004 2003
(dollars in thousands)
Net income (loss) $ (88,129) $ (162,217) $235,110 $(454,862)
Loss (income) from
discontinued operations,
net of tax (558) 2,159 (542,006) (10,458)
Cumulative effect of change
in accounting principle --- --- --- 551
Minority interests (1,154) (128) (202) (4,036)
Provision for income taxes 149 637 (5,370) 2,465
Interest expense, amortization
of deferred financing costs
and dividends on preferred
stock 40,599 68,906 206,770 258,834
Interest and other income
(expense) 38,155 74,733 78,508 132,075
Depreciation, amortization
and accretion 72,537 71,038 283,986 281,980
Non-cash general and
administrative compensation
charges 6,087 53 15,947 13,986
Asset write-down charges 3,836 6,800 7,652 14,317
Restructuring charges
(credits) 1,348 --- 870 1,291
Adjusted EBITDA $72,870 $61,981 $281,265 $236,143
Recurring Cash Flow is computed as follows:
For the For the
Three Months Twelve Months
Ended Ended
(dollars in thousands) Dec. 31, 2004 Dec. 31, 2004
Net cash provided by operating activities $70,875 $112,084
Add: Other adjustments (A) (38,604) (37,589)
Less: Sustaining capital expenditures (3,810) (9,859)
Recurring Cash Flow $28,461 $64,636
(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:
For the For the
Three Months Twelve Months
Ended Ended
(dollars in thousands) Dec. 31, 2004 Dec. 31, 2004
Capital expenditures $14,131 $43,346
Less: Revenue enhancing on existing sites (7,623) (23,959)
Less: Land purchases (501) (2,525)
Less: New site construction (2,197) (7,003)
Sustaining capital expenditures $3,810 $9,859
Adjusted EBITDA for the quarter ending March 31, 2005 and the year ending
December 31, 2005 is forecasted as follows:
(dollars in millions) Q1 2005 Outlook Full Year 2005 Outlook
Net income (loss) $(60.1) to (39.3) $(146.3) to (81.2)
Income from discontinued
operations, net of tax --- ---
Minority interests 0.5 to 2.5 (1.0) to 4.0
Provision for income taxes 0.1 to 0.2 0.0 to 2.0
Interest expense and
amortization of deferred
financing costs 35.0 to 40.0 108.0 to 118.0
Interest and other income
(expense) 1.0 to 2.5 19.8 to 23.8
Depreciation, amortization
and accretion 70.0 to 75.0 253.2 to 283.2
Non-cash general and
administrative compensation
charges 7.2 to 9.4 17.8 to 19.8
Asset write-down charges 0.0 to 2.0 1.9 to 3.0
Restructuring charges (credits) 1.5 to 2.5 1.5 to 2.5
Adjusted EBITDA $74.0 to 76.0 $310.0 to 320.0
Recurring Cash Flow for the quarter ending March 31, 2005 and the year
ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q1 2005 Full Year 2005
Outlook Outlook
Net cash provided by operating
activities $33.0 to $39.0 $186.0 to 212.0
Add: Other adjustments(A) 0.0 to 5.0 $0.0 to 20.0
Less: Sustaining capital expenditures $(2.0) to (3.0) $(10.0) to (14.0)
Recurring Cash Flow $35.0 to 37.0 $185.0 to $200.0
(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 March 31, 2005 and
year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q1 2005 Full Year 2005
Outlook Outlook
Capital expenditures $11.0 to 16.0 $ 50.0 to 74.0
Less: Revenue enhancing
on existing sites $(5.0) to (7.0) $(30.0) to (40.0)
Less: Land purchases $0 to (1.0) $(5.0) to (10.0)
Less: New site construction $(4.0) to (5.0) $(5.0) to (10.0)
Sustaining capital expenditures $2.0 to 3.0 $10.0 to 14.0
Site Rental Gross Margin for the quarter ending March 31, 2005 and for the
year ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q1 2005 Outlook Full Year 2005 Outlook
Site rental revenue $138.0 to 140.0 $ 575.0 to 585.0
Less: Site rental cost
of operations $(46.0) to (48.0) $(185.0) to (195.0)
Site rental gross margin $91.0 to 93.0 $385.0 to $400.0
Recurring Cash Flow for the quarter ending March 31, 2005 and for the year
ending December 31, 2005 is forecasted as follows:
(dollars in millions) Q1 2005 Full Year 2005
Outlook Outlook
Adjusted EBITDA $74.0 to 76.0 $310.0 to 320.0
Less: Interest expense $(36.0) to (37.0) $(108.0) to (118.0)
Less: Sustaining capital
expenditures $(2.0) to (3.0) $(10.0) to (14.0)
Recurring Cash Flow $35.0 to 37.0 $185.0 to $200.0
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) new leasing activity and demand for our towers, (ii) the refinancing of our debt, including the timing thereof, (iii) the terms of any future indebtedness, (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, (x) sustaining capital expenditures, (xi) recurring cash flow, (xii) revenue enhancing capital expenditures on existing sites, (xiii) land purchases, (xiv) new site construction, and (xv) 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, consolidation, network sharing 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 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 or contractual obligations.
* 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 sites and 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.
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,
2004 2003 2004 2003
(As restated) (As restated)
Net revenues:
Site rental $139,549 $127,296 $537,465 $482,747
Network services
and other 18,228 18,372 66,400 72,316
Total net revenues 157,777 145,668 603,865 555,063
Costs of operations:
Site rental 47,918 46,661 183,600 179,549
Network services
and other 13,261 12,138 47,315 46,746
Total costs of
operations 61,179 58,799 230,915 226,295
General and administrative 23,294 22,901 90,230 87,061
Corporate development 434 1,987 1,455 5,564
Restructuring charges
(credits) 1,348 --- 870 1,291
Asset write-down charge 3,836 6,800 7,652 14,317
Non-cash general and
administrative compensation
charges 6,087 53 15,947 13,986
Depreciation, amortization
and accretion 72,537 71,038 283,986 281,980
Operating loss (10,938) (15,910) (27,190) (75,431)
Interest and other income
(expense) (38,155) (74,733) (78,508) (132,075)
Interest expense,
amortization of deferred
financing costs and
dividends on preferred
stock (40,599) (68,906) (206,770) (258,834)
Loss from continuing
operations before income
taxes, minority interests
and cumulative effect of
change in accounting
principle (89,692) (159,549) (312,468) (466,340)
Credit (provision) for
income taxes (149) (637) 5,370 (2,465)
Minority interests 1,154 128 202 4,036
Loss from continuing
operations before
cumulative effect of
change in accounting
principle (88,687) (160,058) (306,896) (464,769)
Discontinued operations:
Income from operations
of CCUK, net of tax --- (2,159) 46,399 10,458
Net gain on disposal of
CCUK, net of tax 558 --- 495,607 ---
Income(loss) from
discontinued operations,
net of tax 558 (2,159) 542,006 10,458
Income (loss) before
cumulative effect of change
in accounting principle (88,129) (162,217) 235,110 (454,311)
Cumulative effect of change
in accounting principle
for asset retirement
obligations --- --- --- (551)
Net income (loss) (88,129) (162,217) 235,110 (454,862)
Dividends on preferred
stock, net of gains
(losses) on purchases of
preferred stock (9,754) (9,997) (38,618) (55,897)
Net income (loss) after
deduction of dividends on
preferred stock, net of
gains (losses) on
purchases of preferred
stock $(97,883) $(172,214) $196,492 $(510,759)
Per common share
- basic and diluted:
Loss from continuing
operations before
cumulative effect
of change in accounting
principle $(0.44) $(0.78) $(1.56) $(2.40)
Income (loss) from
discontinued operations --- (0.01) 2.45 0.05
Cumulative effect of
change in accounting
principle --- --- --- (0.01)
Net income (loss) $(0.44) $(0.79) $0.89 $(2.36)
Common shares outstanding
- basic and diluted 222,783 218,241 221,693 216,947
Adjusted EBITDA (before
restructuring and asset
write-down charges):
Site rental $83,979 $73,295 $325,549 $276,495
Network services and
other (before corporate
development expenses) (10,675) (9,327) (42,829) (34,788)
Adjusted EBITDA before
corporate development
expenses 73,304 63,968 282,720 241,707
Corporate development (434) (1,987) (1,455) (5,564)
Total Adjusted EBITDA $72,870 $61,981 $281,265 $236,143
Crown Castle International Corp.
Condensed Consolidated balance sheet
(in thousands)
December 31,
2004 2003
(As restated)
ASSETS
Current assets:
Cash and cash equivalents $567,148 $409,584
Short-term investments --- 26,600
Receivables, net of allowance for
doubtful accounts 28,366 38,219
Inventories 6,422 9,615
Deferred site rental receivable 6,395 2,332
Prepaid expenses and other current assets 28,983 27,940
Assets of discontinued operations --- 2,052,510
Total current assets 637,314 2,566,800
Property and equipment, net of
accumulated depreciation 3,369,565 3,593,570
Goodwill 333,718 270,438
Deferred site rental receivable 84,928 76,333
Deferred financing costs and other assets,
net of accumulated amortization 145,997 105,092
$4,571,522 $6,612,233
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $12,323 $9,785
Accrued interest 43,308 49,063
Accrued compensation and related benefits 15,445 13,397
Deferred rental revenues and other accrued
liabilities 116,739 106,384
Liabilities of discontinued operations --- 353,544
Long-term debt, current maturities 97,250 267,142
Total current liabilities 285,065 799,315
Long-term debt, less current maturities 1,753,148 3,182,850
Deferred ground lease payable 116,874 98,524
Other liabilities 44,302 53,844
Total liabilities 2,199,389 4,134,533
Minority interests 30,468 176,645
Redeemable preferred stock 508,040 506,702
Stockholders' equity 1,833,625 1,794,353
$4,571,522 $6,612,233
Crown Castle International Corp.
Condensed Consolidated Statement of Cash flows
(in thousands)
Three Months Ended
December 31,
2004 2003
(As restated)
Cash flows from operating activities:
Net loss $(88,129) $(162,217)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation, amortization and accretion 72,537 71,038
Losses on purchases of long-term debt 39,406 68,254
Non-cash general and administrative
compensation charges 6,087 53
Asset write-down charges 3,836 6,800
Equity in losses (earnings) and
write-downs of unconsolidated affiliates 1,954 1,010
Amortization of deferred financing costs,
discounts on long-term debt and dividends
on preferred stock 1,534 17,435
Minority interests (1,154) (128)
Loss (income) from discontinued operations (558) 2,159
Losses on purchases and redemption
of preferred stock --- 5,297
Changes in assets and liabilities,
excluding the effects of acquisitions:
Decrease in receivables 14,266 11,223
Increase in accrued interest 10,749 25,115
Increase in deferred rental revenues,
deferred ground lease payable and other
liabilities 8,835 13,949
Increase (decrease) in accounts payable 3,323 (833)
Increase in inventories, prepaid expenses,
deferred site rental receivable and other
assets (1,811) (10,319)
Net cash provided by operating activities 70,875 48,836
Cash flows from investing activities:
Maturities of investments 267,400 87,300
Proceeds from disposition of property
and equipment 511 1,828
Acquisition of minority interest in joint
venture and other (295,000) (63)
Purchases of investments (115,900) (96,900)
Capital expenditures (14,131) (6,729)
Net cash used for investing activities (157,120) (14,564)
Cash flows from financing activities:
Proceeds from issuance of capital stock 2,020 3,460
Purchases of long-term debt (86,599) (676,521)
Purchases and redemption of capital stock (6,374) (62,266)
Proceeds from issuance of long-term debt --- 1,302,000
Principal payments on long-term debt --- (102,750)
Incurrence of financing costs --- (22,093)
Net borrowings (payments) under revolving
credit agreements --- (20,000)
Net cash provided by (used for)
financing activities (90,953) 421,830
Effect of exchange rate changes on cash 1,283 1,695
Discontinued operations (13,942) (205,724)
Net increase (decrease) in cash and cash
equivalents (189,857) 252,073
Cash and cash equivalents at beginning of period 757,005 157,511
Cash and cash equivalents at end of period $567,148 $409,584
Supplemental disclosure of cash flow information:
Interest paid $27,460 $23,689
Income taxes paid 11,149 137
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 3/31/04
US AUS CCIC
Revenues
Site Rental 120,926 9,254 130,180
Services 13,499 1,204 14,703
Total Revenues 134,425 10,458 144,883
Operating Expenses
Site Rental 40,391 4,134 44,525
Services 10,268 728 10,996
Total Operating Expenses 50,659 4,862 55,521
General & Administrative
Site Rental 4,242 2,380 6,622
Services 14,988 --- 14,988
Total General & Administrative 19,230 2,380 21,610
Operating Cash Flow
Site Rental 76,293 2,740 79,033
Services (11,757) 476 (11,281)
Total Pre-Overhead Cash Flow 64,536 3,216 67,752
Corporate Overhead 439 --- 439
Adjusted EBITDA 64,097 3,216 67,313
Quarter Ended 3/31/04
US AUS CCIC
Gross Margins:
Site Rental 67% 55% 66%
Services 24% 40% 25%
Operating Cash Flow Margins
Site Rental 63% 30% 61%
Services -87% 40% -77%
Adjusted EBITDA Margin 48% 31% 46%
Quarter Ended 6/30/04
US AUS CCIC
Revenues
Site Rental 121,058 11,449 132,507
Services 17,390 1,123 18,513
Total Revenues 138,448 12,572 151,020
Operating Expenses
Site Rental 41,490 3,913 45,403
Services 11,591 681 12,272
Total Operating Expenses 53,081 4,594 57,675
General & Administrative
Site Rental 4,693 2,630 7,323
Services 15,362 --- 15,362
Total General & Administrative 20,055 2,630 22,685
Operating Cash Flow
Site Rental 74,875 4,906 79,781
Services (9,563) 442 (9,121)
Total Pre-Overhead Cash Flow 65,312 5,348 70,660
Corporate Overhead 371 --- 371
Adjusted EBITDA 64,941 5,348 70,289
Quarter Ended 6/30/04
US AUS CCIC
Gross Margins:
Site Rental 66% 66% 66%
Services 33% 39% 34%
Operating Cash Flow Margins
Site Rental 62% 43% 60%
Services -55% 39% -49%
Adjusted EBITDA Margin 47% 43% 47%
Quarter Ended 9/30/04
US AUS CCIC
Revenues
Site Rental 125,546 9,683 135,229
Services 13,981 975 14,956
Total Revenues 139,527 10,658 150,185
Operating Expenses
Site Rental 42,327 3,427 45,754
Services 9,894 892 10,786
Total Operating Expenses 52,221 4,319 56,540
General & Administrative
Site Rental 4,211 2,508 6,719
Services 15,922 --- 15,922
Total General & Administrative 20,133 2,508 22,641
Operating Cash Flow
Site Rental 79,008 3,748 82,756
Services (11,835) 83 (11,752)
Total Pre-Overhead Cash Flow 67,173 3,831 71,004
Corporate Overhead 211 --- 211
Adjusted EBITDA 66,962 3,831 70,793
Quarter Ended 9/30/04
US AUS CCIC
Gross Margins:
Site Rental 66% 65% 66%
Services 29% 9% 28%
Operating Cash Flow Margins
Site Rental 63% 39% 61%
Services -85% 9% -79%
Adjusted EBITDA Margin 48% 36% 47%
Quarter Ended 12/31/04
US AUS CCIC
Revenues
Site Rental 128,838 10,711 139,549
Services 17,225 1,003 18,228
Total Revenues 146,063 11,714 157,777
Operating Expenses
Site Rental 43,263 4,655 47,918
Services 12,436 825 13,261
Total Operating Expenses 55,699 5,480 61,179
General & Administrative
Site Rental 4,629 3,023 7,652
Services 15,642 --- 15,642
Total General & Administrative 20,271 3,023 23,294
Operating Cash Flow
Site Rental 80,946 3,033 83,979
Services (10,853) 178 (10,675)
Total Pre-Overhead Cash Flow 70,093 3,211 73,304
Corporate Overhead 434 --- 434
Adjusted EBITDA 69,659 3,211 72,870
Quarter Ended 12/31/04
US AUS CCIC
Gross Margins:
Site Rental 66% 57% 66%
Services 28% 18% 27%
Operating Cash Flow Margins
Site Rental 63% 28% 60%
Services -63% 18% -59%
Adjusted EBITDA Margin 48% 27% 46%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
03/31/2004 06/30/2004 09/30/2004 12/31/2004
Net income (loss) $(76,637) $(50,780) $450,656 $(88,129)
Income from discontinued
operations, net of tax (14,544) (16,455) (510,449) (558)
Minority interests 131 277 544 (1,154)
Provision for income taxes 653 684 (6,856) 149
Interest expense, amortization
of deferred financing costs
and dividends on preferred
stock 57,322 56,568 52,281 40,599
Interest and other income
(expense) 25,414 1,349 13,590 38,155
Depreciation, amortization
and accretion 70,844 70,575 70,030 72,537
Non-cash general and
administrative compensation
charges 2,215 6,203 1,442 6,087
Asset write-down charges 1,948 1,868 --- 3,836
Restructuring charges (credits) (33) --- (445) 1,348
Adjusted EBITDA $67,313 $70,289 $70,793 $72,870
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 3/31/04
Restricted Other CCIC
Revenues
Site Rental 130,180 --- 130,180
Services 14,703 --- 14,703
Total Revenues 144,883 --- 144,883
Operating Expenses
Site Rental 44,525 --- 44,525
Services 10,996 --- 10,996
Total Operating Expenses 55,521 --- 55,521
General & Administrative
Site Rental 6,622 --- 6,622
Services 13,314 1,674 14,988
Total General & Administrative 19,936 1,674 21,610
Operating Cash Flow
Site Rental 79,033 --- 79,033
Services (9,607) (1,674) (11,281)
Total Pre-Overhead Cash Flow 69,426 (1,674) 67,752
Corporate Overhead 439 --- 439
Adjusted EBITDA 68,987 (1,674) 67,313
Quarter Ended 3/31/04
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 25% --- 25%
Operating Cash Flow Margins
Site Rental 61% --- 61%
Services -65% --- -77%
Adjusted EBITDA Margin 48% N/A 46%
Quarter Ended 6/30/04
Restricted Other CCIC
Revenues
Site Rental 132,507 --- 132,507
Services 18,248 265 18,513
Total Revenues 150,755 265 151,020
Operating Expenses
Site Rental 45,403 --- 45,403
Services 11,954 318 12,272
Total Operating Expenses 57,357 318 57,675
General & Administrative
Site Rental 7,323 --- 7,323
Services 14,167 1,195 15,362
Total General & Administrative 21,490 1,195 22,685
Operating Cash Flow
Site Rental 79,781 --- 79,781
Services (7,873) (1,248) (9,121)
Total Pre-Overhead Cash Flow 71,908 (1,248) 70,660
Corporate Overhead 371 --- 371
Adjusted EBITDA 71,537 (1,248) 70,289
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 -43% --- -49%
Adjusted EBITDA Margin 47% N/A 47%
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 45,754 --- 45,754
Services 10,691 95 10,786
Total Operating Expenses 56,445 95 56,540
General & Administrative
Site Rental 6,719 --- 6,719
Services 13,751 2,171 15,922
Total General & Administrative 20,470 2,171 22,641
Operating Cash Flow
Site Rental 82,756 --- 82,756
Services (9,486) (2,266) (11,752)
Total Pre-Overhead Cash Flow 73,270 (2,266) 71,004
Corporate Overhead 211 --- 211
Adjusted EBITDA 73,059 (2,266) 70,793
Quarter Ended 9/30/04
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 29% --- 28%
Operating Cash Flow Margins
Site Rental 61% --- 61%
Services -63% --- -79%
Adjusted EBITDA Margin 49% N/A 47%
Quarter Ended 12/31/04
Restricted Other CCIC
Revenues
Site Rental 139,549 --- 139,549
Services 17,986 242 18,228
Total Revenues 157,535 242 157,777
Operating Expenses
Site Rental 47,918 --- 47,918
Services 12,589 672 13,261
Total Operating Expenses 60,507 672 61,179
General & Administrative
Site Rental 7,652 --- 7,652
Services 14,123 1,519 15,642
Total General & Administrative 21,775 1,519 23,294
Operating Cash Flow
Site Rental 83,979 --- 83,979
Services (8,726) (1,949) (10,675)
Total Pre-Overhead Cash Flow 75,253 (1,949) 73,304
Corporate Overhead 434 --- 434
Adjusted EBITDA 74,819 (1,949) 72,870
Quarter Ended 9/30/04
Restricted Other CCIC
Gross Margins:
Site Rental 66% --- 66%
Services 30% --- 27%
Operating Cash Flow Margins
Site Rental 60% --- 60%
Services -49% --- -59%
Adjusted EBITDA Margin 47% N/A 46%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
03/31/2004 06/30/2004 09/30/2004 12/31/2004
Net income (loss) $(76,637) $(50,780) $450,656 $(88,129)
Income from discontinued
operations, net of tax (14,544) (16,455) (510,449) (558)
Minority interests 131 277 544 (1,154)
Provision for income taxes 653 684 (6,856) 149
Interest expense, amortization
of deferred financing costs
and dividends on preferred
stock 57,322 56,568 52,281 40,599
Interest and other income
(expense) 25,414 1,349 13,590 38,155
Depreciation, amortization and
accretion 70,844 70,575 70,030 72,537
Non-cash general and
administrative compensation
charges 2,215 6,203 1,442 6,087
Asset write-down charges 1,948 1,868 --- 3,836
Restructuring charges
(credits) (33) --- (445) 1,348
Adjusted EBITDA $67,313 $70,289 $70,793 $72,870
CCI FACT SHEET Q4 2004
$ in thousands
Q4 '03 Q4 '04 % Change
CCUSA and Crown Atlantic
Site Rental Revenue 118,298 $128,838 9%
Ending Sites 10,642 10,612 0%
CCAUS
Site Rental Revenue 8,998 10,711 19%
Ending Sites 1,388 1,388 0%
TOTAL CCIC
Site Rental Revenue $127,296 $139,549 10%
Ending Sites 12,030 12,000 0%
Ending Cash and Investments $436,184 $567,148
Debt
Bank Debt $1,484,750 $180,000
Bonds $1,965,242 $1,670,398
6 1/4% & 8 1/4% Convertible
Preferred Stock $506,702 $508,040
Total Debt $3,956,694 $2,358,438
Leverage Ratios
Net Bank Debt / EBITDA* 4.2X N/A
Net Bank Debt + Bonds / EBITDA* 12.2X 4.4X
Total Net Debt / EBITDA* 14.2X 6.1X
*Last Quarter Annualized Adjusted
EBITDA $247,924 $291,480
Contacts: W. Benjamin Moreland, CFO or
Jay Brown, Treasurer
Crown Castle International Corp.
713-570-3000
SOURCE Crown Castle International Corp.
-0- 03/29/2005
/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 CCA MAV ERP
AH-CD
-- DATU018 --
8128 03/29/2005 16:43 EST http://www.prnewswire.com