Crown Castle International Reports Record Third Quarter Results
HOUSTON--(BUSINESS WIRE)--Oct. 26, 2000--Crown Castle International Corp. (Nasdaq:TWRS) today reported record results for the three months ended Sept. 30, 2000.
Revenues for the third quarter of 2000 increased 76 percent to $174.6 million compared to $98.9 million during the third quarter of 1999. Tower cash flow for the third quarter increased 53 percent to $59.5 million, up from $38.8 million in last year's third quarter. Third quarter earnings before interest, taxes, depreciation and amortization, or EBITDA, grew 70 percent to $68.8 million compared to $40.6 million in last year's third quarter. The Company added 1,427 new tenants and 1,078 tenants from acquisitions in the third quarter of 2000 compared to 880 new tenants and 1,975 tenants from acquisitions added in the third quarter of 1999.
During the quarter, the Company built 330 towers and acquired 714 towers. Net of anchor tenants on newly-built towers, the Company added 1,282 new tenants during the third quarter, representing an annualized co-location rate of .45 tenants per tower on the 11,453 sites owned and managed at the beginning of the quarter. The 1,282 new tenants added represent an increase of 18 percent over the 1,091 new tenants added during the second quarter of 2000. Annual same tower wireless revenue growth was 32 percent for the 7,068 towers owned and operated by the Company on Sept. 30, 1999.
"Given the tremendous growth in our organization this year, I am pleased that we continue to exceed our internal operating and financial goals while positioning the Company to continue its first-mover status in other markets where we believe that demand for our services will be robust," stated Ted B. Miller, Jr., chairman and CEO of Crown Castle International. "Also, the outstanding performance of our services business this quarter reflects the increasing confidence our carrier partners have in outsourcing more of their activities to Crown Castle."
OUTLOOK FOR Q4 2000
The following statements are based on current expectations and assume a US dollar to UK pound exchange rate of 1.45 US dollars to
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1.00 UK pound. These statements are forward-looking, and actual results may differ materially.
The Company expects fourth quarter site rental and broadcast transmission revenue to be between $120 million and $123 million, assuming that new tenants are added to existing towers at an annualized rate of between .40 tenants per tower and .50 tenants per tower during the quarter. The Company expects fourth quarter network services revenue to be between $45 million and $55 million. The Company expects fourth quarter EBITDA of between $67 million and $72 million.
The Company expects to construct approximately 225 to 275 new towers during the fourth quarter. The Company expects total capital expenditures to be between $150 million and $165 million during the fourth quarter.
The Company expects total interest expense, net of interest income, to be between $65 million and $70 million for the fourth quarter.
OUTLOOK FOR YEAR 2001
Currently, the Company projects total revenues of between $750 million and $800 million for year 2001, and total EBITDA of between $340 million and $350 million, assuming an exchange rate of 1.45 US dollars to 1.00 UK pound. The Company is currently in the process of budgeting for year 2001 and expects to provide a more detailed outlook for year 2001 on or before the release of the Company's fourth quarter financial results.
Crown Castle has scheduled a conference call for Friday morning, Oct. 27, 2000 at 9:00 a.m. Eastern Time to discuss third quarter financial and operational results and the Company's Outlook. To participate in the call, dial 719/457-2665 at least ten minutes before the conference call begins and ask for the Crown Castle conference call. Investors, analysts and the general public will also have the opportunity to listen to the conference call free over the Internet by visiting the Company's Web site at www.crowncastle.com. To listen to the live call on the Web, please visit the Crown Castle Web site at least fifteen minutes early to register, download and install any necessary audio software.
Crown Castle International Corp. engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers and rooftops as well as analog and digital audio and television broadcast transmission systems. The Company offers near-universal broadcast coverage in the United Kingdom and significant wireless communications coverage to 68 of the top 100 United States markets, more than 95 percent of the UK population and more than 92 percent of the Australian population. Crown Castle International owns, operates and manages over 12,000 wireless communication towers internationally. For more information on Crown Castle International, visit: www.crowncastle.com.
This press release contains forward-looking statements and information that are based on management's beliefs as well as assumptions made by and information currently available to management. Such forward-looking statements include, but are not limited to, expectations, projections and estimates regarding (i) demand for our assets and services, (ii) our strength in our industry, (iii) the US dollar to UK pound exchange rate, (iv) site rental and broadcast transmission revenue and EBITDA, (v) new tenant co-location rates, (vi) network services revenue and EBITDA, (vii) towers to be constructed, (viii) capital expenditures, (ix) interest expense, and (x) total revenues and total EBITDA for Year 2001.
Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, but not limited to the success or failure of our efforts to implement our business strategy and the following:
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We may be unable to manage our significant growth.
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Our substantial level of indebtedness could adversely affect our ability to react to changes in our business and limit our ability to use debt to fund future capital needs.
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If we are unable to service our indebtedness, our indebtedness may be accelerated.
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Restrictive covenants on our debt instruments may limit our ability to take actions that may be in our best interests.
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We may be unable to raise the significant capital required to fund our operations and make acquisitions.
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We may not be able to construct or acquire new towers at the pace and in the locations that we desire.
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Our business depends on the demand for wireless communications.
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Demand for our network services business is very volatile which causes our network services operating results to vary significantly for any particular period.
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We operate in an increasingly competitive industry and many of our competitors have significantly more resources than we do.
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Extensive regulations, which could change at any time, govern our business and industry, and we could fail to comply with these regulations.
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We could suffer from future claims if radio frequency emissions from equipment on our towers is demonstrated to cause negative health effects.
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Our international operations expose us to changes in foreign currency exchange rates.
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We are heavily dependent on our senior management.
Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential factors which could affect the Company's financial results is included in the Risk Factors sections of the Company's filings with the Securities and Exchange Commission.
Tables to Follow
Three Months Ended Nine Months Ended Sept. 30, Sept. 30, ---------------------- ---------------------- 2000 1999 2000 1999 -------- --------- --------- --------- Net revenues: Site rental and broadcast transmission $117,174 $75,632 $320,418 $183,135 Network services and other 57,415 23,295 126,774 48,428 --------- --------- --------- --------- Total net revenues 174,589 98,927 447,192 231,563 --------- --------- --------- --------- Costs of operations: Site rental and broadcast transmission 50,383 32,934 139,233 78,018 Network services and other 34,993 11,712 70,901 26,869 --------- --------- --------- --------- Total costs of operations 85,376 44,646 210,134 104,887 --------- --------- --------- --------- General and administrative 18,196 12,534 52,544 30,076 Corporate development 2,222 1,194 6,415 4,134 Restructuring charges -- -- -- 1,814 Non-cash compensation charges 808 501 1,619 1,672 Depreciation and amortization 65,596 39,850 167,365 89,369 --------- --------- --------- --------- Operating income (loss) 2,391 202 9,115 (389) Interest and other income (expense) 10,217 7,923 22,586 12,802 Interest expense and amortization of deferred financing costs (65,498) (34,506) (173,987) (72,348) --------- --------- --------- --------- Loss before income taxes, minority interests, extraordinary item and cumulative effect of change in accounting principle (52,890) (26,381) (142,286) (59,935) Provision for income taxes (127) (71) (163) (268) Minority interests 52 (615) (1,806) (1,187) --------- --------- --------- --------- Loss before extraordinary item and cumulative effect of change in accounting principle (52,965) (27,067) (144,255) (61,390) Extraordinary item: Loss on early extinguishment of debt -- -- (1,495) -- Cumulative effect of change in accounting principle for costs of start-up activities -- -- -- (2,414) --------- --------- --------- --------- Net loss (52,965) (27,067) (145,750) (63,804) Dividends on preferred stock (16,353) (6,824) (39,571) (19,846) --------- --------- --------- --------- Net loss after deduction of dividends on preferred stock $(69,318) $(33,891) $(185,321) $(83,650) ========= ========= ========= ========= Per common share -- basic and diluted: Loss before extraordinary item and cumulative effect of change in accounting principle $(0.36) $(0.23) $(1.07) $(0.66) Extraordinary item -- -- (0.01) -- Cumulative effect of change in accounting principle -- -- -- (0.02) --------- --------- --------- --------- Net loss $(0.36) $(0.23) $(1.08) $(0.68) ========= ========= ========= ========= Common shares outstanding -- basic and diluted 191,763 149,621 171,985 123,067 ========= ========= ========= ========= EBITDA (before restructuring charges): Site rental and broadcast transmission $59,481 $38,788 $160,254 $96,435 --------- --------- --------- --------- Network services and other 9,314 1,765 17,845 (3,969) --------- --------- --------- --------- Total EBITDA $68,795 $40,553 $178,099 $92,466 ========= ========= ========= ========= CROWN CASTLE INTERNATIONAL CORP. Towers & Tenants Fact Sheet ---------------------------- --------------------------- Quarter Ended 12/31/99 Quarter Ended 3/31/00 ---------------------------- --------------------------- US UK Total US UK Total ---------------------------- --------------------------- Sites: Owned Towers 5,306 2,020 7,326 6,351 2,146 8,497 Managed Towers 13 -- 13 13 -- 13 Rooftop Sites 98 51 149 98 51 149 ---------------------------- --------------------------- Total Sites 5,417 2,071 7,488 6,462 2,197 8,659 Site Activity: Beginning Sites 5,109 1,959 7,068 5,417 2,071 7,488 Built 200 112 312 182 126 308 Acquired 108 -- 108 864 -- 864 Lost -- -- -- (1) -- (1) Managed Sites Added -- -- -- -- -- -- ---------------------------- --------------------------- Ending Sites 5,417 2,071 7,488 6,462 2,197 8,659 ---------------------------- --------------------------- ------------------------- ------------------------- Quarter Ended 6/30/00 Quarter Ended 9/30/00 ------------------------- ------------------------- US UK AUS Total US UK AUS Total ------------------------- ------------------------- Sites: Owned Towers 8,379 2,196 -- 10,575 9,359 2,252 188 11,799 Managed Towers 13 -- 716 729 13 -- 528 541 Rooftop Sites 98 51 -- 149 98 51 -- 149 ------------------------- ------------------------- Total Sites 8,490 2,247 716 11,453 9,470 2,303 716 12,489 ------------------------- ------------------------- Site Activity: Beginning Sites 6,462 2,197 -- 8,659 8,490 2,247 716 11,453 Built 247 50 -- 297 274 56 -- 330 Acquired 1,781 -- 716 2,497 714 -- -- 714 Lost -- -- -- -- (8) -- -- (8) Managed Sites Added -- -- -- -- -- -- -- -- ------------------------- ------------------------- Ending Sites 8,490 2,247 716 11,453 9,470 2,303 716 12,489 ------------------------- ------------------------- -------------------------- --------------------------- Quarter Ended 12/31/99 Quarter Ended 3/31/00 -------------------------- --------------------------- US UK Total US UK Total -------------------------- --------------------------- Tenant Activity: Beginning Tenants 9,863 3,705 13,568 11,306 3,995 15,301 Anchors on Builds 150 112 262 123 126 249 New 512 178 690 578 200 778 Acquired 781 -- 781 1,118 -- 1,118 -------------------------- --------------------------- Ending Tenants 11,306 3,995 15,301 13,125 4,321 17,446 -------------------------- --------------------------- ------------------------- ---------------------------- Quarter Ended 6/30/00 Quarter Ended 9/30/00 ------------------------- ---------------------------- US UK AUS Total US UK AUS Total ------------------------- ---------------------------- Tenant Activity: Beginning Tenants 13,125 4,321 -- 17,446 16,337 4,598 1,061 21,996 Anchors on Builds 105 50 -- 155 89 56 -- 145 New 864 227 -- 1,091 918 194 170 1,282 Acquired 2,243 -- 1,061 3,304 1,078 -- -- 1,078 ------------------------- ---------------------------- Ending Tenants 16,337 4,598 1,061 21,996 18,422 4,848 1,231 24,501 ------------------------- ---------------------------- ---------------------- --------------------- Quarter Ended 12/31/99 Quarter Ended 3/31/00 ---------------------- --------------------- US UK Total US UK Total ---------------------- --------------------- Tenants per Site 2.1 1.9 2.0 2.0 2.0 2.0 New Tenants per Site(a) 0.12 0.14 0.13 0.13 0.15 0.13 Annualized 0.50 0.56 0.52 0.50 0.59 0.53 Pure Co-Lo's per Site(a) 0.10 0.09 0.10 0.11 0.10 0.10 Annualized 0.40 0.36 0.39 0.43 0.39 0.42 ---------------------- ---------------------- --------------------- ---------------------- Quarter Ended 6/30/00 Quarter Ended 9/30/00 --------------------- ---------------------- US UK AUS Total US UK AUS Total --------------------- ---------------------- Tenants per Site 1.9 2.0 1.5 1.9 1.9 2.1 1.7 2.0 New Tenants per Site(a) 0.14 0.12 -- 0.14 0.11 0.11 0.24 0.12 Annualized 0.58 0.49 -- 0.56 0.46 0.43 0.95 0.48 Pure Co-Lo's per Site(a) 0.13 0.10 -- 0.13 0.11 0.09 0.24 0.11 Annualized 0.53 0.41 -- 0.50 0.43 0.35 0.95 0.45 --------------------- ---------------------- (a) Excludes acquired towers and acquired tenants.
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CONTACT: | Crown Castle International, Houston |
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W. Benjamin Moreland, 713/570-3000 | |
CFO | |
or | |
Easterly Investor Relations, Houston | |
Ken Dennard, 713/529-6600 | |
kdennard@easterly.com | |
or | |
Lisa Elliott, 713/529-6600 | |
lisae@easterly.com | |