Crown Castle International Reports Third Quarter 2004 Results
HOUSTON, Oct. 26 /PRNewswire-FirstCall/ -- Crown Castle International Corp. (NYSE: CCI) today reported results for the third quarter ended September 30, 2004.
Site rental revenue for the third quarter of 2004 increased 11.6% percent to $134.1 million, up $14.0 million from $120.1 million for the same period in the prior year. Operating income improved to $11.6 million in the third quarter of 2004 from $(7.3) million in the third quarter of 2003, an increase of $18.9 million.
Net loss from continuing operations improved to $(56.1) million for the third quarter of 2004, inclusive of a $13.9 million loss from the retirement of debt, from a loss of $(104.8) million for last year's third quarter, inclusive of $37.6 million in losses from the retirement of debt and preferred securities. Net income was $461.3 million for the third quarter of 2004, inclusive of $517.4 million in income from discontinued operations and a $13.9 million loss from the retirement of debt, compared to a net loss of $(99.7) million for the same period in 2003, inclusive of $5.1 million in income from discontinued operations and $37.6 million in losses from the retirement of debt and preferred securities. Net income after deduction of dividends on preferred stock was $451.5 million in the third quarter of 2004, inclusive of $517.4 million in income from discontinued operations and a $13.9 million loss from the retirement of debt, compared to a loss of $(109.2) million for the same period last year, inclusive of $5.1 million in income from discontinued operations and $37.6 million in losses from the retirement of debt and preferred securities. Third quarter 2004 net income per share was $2.02, inclusive of $2.32 per share in income from discontinued operations, compared to a loss per share of $(0.50) in last year's third quarter, inclusive of $0.03 per share in income from discontinued operations.
OPERATING RESULTS
US site rental revenue for the third quarter of 2004 increased $11.9 million, or 10.5%, to $125.3 million, from $113.4 million for the same period in 2003. US site rental gross margin, defined as site rental revenue less site rental cost of operations, increased 13.2% to $86.1 million, up $10.1 million in the third quarter of 2004 from the same period in 2003.
On a consolidated basis, site rental gross margin increased 14.8% to $91.9 million, up $11.8 million in the third quarter of 2004 from the same period in 2003. Both the US and consolidated results approximate same tower sales and gross margin as over 99% of Crown Castle's sites were in operation for the 12 months preceding June 30, 2004.
"We are very pleased with our company performance this quarter as we continue to complete over 25% more new tenant leases with our customers in 2004 than in 2003," stated John P. Kelly, President and Chief Executive Officer of Crown Castle. "As our customers focus on enhancing their wireless networks to meet consumer demand, we are diligently working to provide them rapid coverage and capacity solutions on our extensive portfolio of towers. Moreover, the company-transforming sale of our UK subsidiary that was completed during the quarter affords us the operational and financial flexibility to capitalize on the anticipated growth potential of the US market."
Net cash from operating activities for the third quarter of 2004 was $19.2 million. Free cash flow, defined as net cash from operating activities less capital expenditures, was a source of cash of $9.5 million for the third quarter of 2004. For the third quarter of 2004, total capital expenditures were $9.8 million, comprised of $1.6 million of maintenance capital expenditures and $8.2 million of revenue generating capital expenditures. Crown Castle had $908.5 million of cash and cash equivalents as of September 30, 2004. During the third quarter, Crown Castle purchased approximately 2.7 million shares of its common stock using approximately $36.0 million in cash, an average of $13.49 per share.
SALE OF UK SUBSIDIARY
On August 31, 2004, Crown Castle completed the sale of its UK subsidiary to National Grid Transco Plc for approximately $2.0 billion in cash. Crown Castle used $1.3 billion of the proceeds from the transaction to fully repay Crown Castle Operating Company's credit facility. As a result of this transaction, Crown Castle's UK subsidiary is classified as discontinued operations in the financial results.
On September 10, 2004, Crown Castle announced cash tender offers for certain of its outstanding 9 3/8% Senior Notes, 10 3/4% Senior Notes, 7.5% Senior Notes and 7.5% Series B Senior Notes (collectively, "the Notes") in order to satisfy certain provisions of the Notes relating to the sale of its UK subsidiary. On October 8, 2004, Crown Castle retired $465,000 in aggregate principal amount of the Notes received during the tender period.
"After the closing of the sale of our UK subsidiary, we continue to focus on decreasing our cost of debt toward a target rate of approximately 6% and positioning Crown Castle to have the financial flexibility to utilize our internally generated capital for the highest yielding investments, including opportunistic share purchases, new assets and further investments in our existing assets," stated W. Benjamin Moreland, Chief Financial Officer of Crown Castle. "Further, we continue to evaluate opportunities to replace our higher coupon notes with new senior indebtedness, which we believe would come with much lower interest costs."
OUTLOOK
The following statements and outlook tables are based on current expectations and assumptions and assume a US dollar to Australian dollar exchange rate of 0.70 US dollars to 1.00 Australian dollar. 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 are set forth below and in Crown Castle's filings with the Securities and Exchange Commission.
Crown Castle has increased its 2004 Outlook for Site Rental Revenue from between $525 million and $530 million to between $528 million and $530 million and Adjusted EBITDA from between $280 million and $287 million to between $288 million and $291 million. Crown Castle has adjusted its 2004 outlook for revenue generating capital expenditures from between $33 million and $40 million to between $37 million and $38 million.
The following table sets forth Crown Castle's current outlook for the fourth quarter and full year 2004 (dollars in millions):
Fourth Quarter Full Year
2004 2004
Site Rental Revenue $ 134 to 136 $ 528 to 530
Adjusted EBITDA $ 72 to 75 $ 288 to 291
Maintenance capital expenditures $ 2 to 3 $ 7 to 9
Revenue generating capital expenditures $ 13 to 16 $ 37 to 38
The following table sets forth Crown Castle's current outlook for 2005
(dollars in millions):
2005 Outlook
Site Rental Revenue $ 565 to 575
Adjusted EBITDA $ 310 to 320
Net cash provided by operating activities $ 225 to 245
Maintenance capital expenditures $ 7 to 10
Revenue generating capital expenditures $ 23 to 30
Free cash flow $ 195 to 215
Crown Castle's 2005 Outlook for net cash provided by operating activities includes expected savings from interest expense reductions that may be achieved through refinancings and further debt reductions associated with the application of UK sales proceeds and cash balances, and refinancings. Free cash flow is defined as net cash provided by operating activities less all capital expenditures (both maintenance and revenue generating capital expenditures).
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Wednesday, October 27, 2004, at 9:30 a.m. eastern time to discuss third quarter 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 from 11:30 a.m. eastern time on Wednesday, October 27, 2004, through 11:59 p.m. eastern time on Wednesday, November 3, 2004, and may be accessed by dialing 303-590-3000 using passcode 11011989#. An audio archive will also be available on the company's website at http://www.crowncastle.com shortly after the call and will be accessible for approximately 90 days.
Crown Castle International Corp. engineers, deploys, owns and operates technologically advanced shared wireless infrastructure, including extensive networks of towers and rooftops. Crown Castle offers significant wireless communications coverage to 68 of the top 100 United States markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 10,600 and 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit: http://www.crowncastle.com .
Non-GAAP Financial Measures:
This press release includes presentations of Free Cash Flow and Adjusted EBITDA, which are non-GAAP financial measures. Crown Castle defines Free Cash Flow as net cash provided by operating activities less capital expenditures (both amounts from the Consolidated Statement of Cash Flows). 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). Free Cash Flow and Adjusted EBITDA are not intended as alternative measures of operating results or cash flow from operations (as determined in accordance with generally accepted accounting principles). Further, our measure of Free Cash Flow and Adjusted EBITDA may not be comparable to similarly titled measures of other companies. Free Cash Flow is presented as additional information because management believes it to be a useful indicator of our ability to execute our business strategy without reliance on additional borrowing or the use of our cash and cash equivalents. 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. The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures. Our results under GAAP are set forth in the financial statements following this press release.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP
Financial Measures
Free Cash Flow is computed as follows:
(In thousands of dollars) For the Three Months Ended
September 30, September 30,
2004 2003
Net cash provided by operating activities $19,228 $(1,000)
Less: Capital expenditures (9,758) (6,092)
Free Cash Flow $ 9,470 $(7,092)
Free Cash Flow for the year ending December 31, 2005 is forecasted as
follows:
(in millions of dollars) Full Year 2005
Outlook
Net cash provided by operating activities $ 225.0 to 245.0
Less: Capital expenditures $ (30.0) to (40.0)
Free Cash Flow $ 195.0 to 215.0
Adjusted EBITDA is computed as follows:
(in thousands of dollars) Three Months Ended
September 30,
2004 2003
Net income (loss) $ 461,333 $ (99,678)
Income from discontinued operations,
net of tax (517,449) (5,076)
Minority interests 1,729 (151)
Provision for income taxes 144 85
Interest expense, amortization of
deferred financing costs and
dividends on preferred stock 52,281 62,408
Interest and other income (expense) 13,590 35,104
Depreciation, amortization and accretion 60,587 60,846
Non-cash general and administrative
compensation charges 1,442 6,205
Asset write-down charges --- 6,137
Restructuring charges (credits) (445) (1,058)
Adjusted EBITDA $ 73,212 $ 64,822
Adjusted EBITDA for the quarter ending December 31, 2004 is forecasted as
follows:
(in millions of dollars)
Q4 2004
Outlook
Net income (loss) $(46.5) to $(28.0)
Income from discontinued operations,
net of tax 0 to 0.7
Minority interests 0.5 to 2.5
Provision for income taxes 0.1 to 0.2
Interest expense and amortization of
deferred financing costs 40.0 to 45.0
Interest and other income (expense) 1.0 to 2.5
Depreciation, amortization and accretion 60.0 to 62.0
Non-cash general and administrative
compensation charges 1.4 to 3.6
Asset write-down charges 0 to 2.0
Restructuring charges ---
Adjusted EBITDA $ 72.0 to 75.0
Adjusted EBITDA for the year ending December 31, 2004 and the year ending
December 31, 2005 is forecasted as follows:
(in millions of dollars)
Full Year 2004 Full Year 2005
Outlook Outlook
Net income (loss) $ 310.4 to 328.9 $ (69.3) to (5.2)
Income from discontinued
operations, net of tax (548.4) to (547.7) ---
Minority interests 5.0 to 7.0 (1.0) to 4.0
Provision for income taxes 0.6 to 0.7 0 to 2.0
Interest expense and amortization
of deferred financing costs 206.2 to 211.2 71.5 to 81.5
Interest and other income (expense) 41.0 to 42.5 19.8 to 23.8
Depreciation, amortization
and accretion 243.0 to 245.0 221.0 to 251.0
Non-cash general and administrative
compensation charges 11.3 to 13.5 12.0 to 14.0
Asset write-down charges 3.8 to 5.8 1.9 to 3.0
Restructuring charges (credits) (0.4) ---
Adjusted EBITDA $ 288.0 to 291.0 $ 310.0 to 320.0
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) leasing rates for our sites and towers, (ii) growth potential of the US market, (iii) potential cost of debt and interest expense reductions, (iv) the investment of internally generated capital, (v) potential share purchases, (vi) currency exchange rates, (vii) revenues, (viii) Adjusted EBITDA, (ix) capital expenditures, (x) net cash provided by operating activities, (xi) free cash flow, (xii) potential debt and preferred stock refinancings and (xiii) the use of proceeds from the sale of our UK business. 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.
-- Our network services business has historically experienced significant
volatility in demand, which reduces the predictability of our results.
-- We are heavily dependent on our senior management.
-- 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.
Contacts: W. Benjamin Moreland, CFO
Jay Brown, Treasurer
Crown Castle International Corp.
713-570-3000
Crown Castle International Corp.
Condensed Consolidated Statement of Operations
And Other Financial Data
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
Net revenues:
Site rental $134,090 $120,127 $394,422 $350,608
Network services and other 14,956 17,396 48,172 53,944
Total net revenues 149,046 137,523 442,594 404,552
Costs of operations:
Site rental 42,196 40,062 124,974 120,655
Network services and other 10,786 10,178 34,054 34,608
Total costs of operations 52,982 50,240 159,028 155,263
General and administrative 22,641 21,422 66,936 64,160
Corporate development 211 1,039 1,021 3,577
Restructuring charges (credits) (445) (1,058) (478) 1,291
Asset write-down charges --- 6,137 3,816 7,517
Non-cash general and administrative
compensation charges 1,442 6,205 9,860 13,933
Depreciation, amortization
and accretion 60,587 60,846 182,931 183,072
Operating income (loss) 11,628 (7,308) 19,480 (24,261)
Interest and other income (expense)(13,590) (35,104) (39,966) (45,938)
Interest expense, amortization
of deferred financing costs and
dividends on preferred stock (52,281) (62,408) (166,171) (189,928)
Loss from continuing operations
before income taxes, minority
interests and cumulative effect
of change in accounting principle (54,243) (104,820) (186,657) (260,127)
Provision for income taxes (144) (85) (481) (328)
Minority interests (1,729) 151 (4,538) (1,136)
Loss from continuing operations
before cumulative effect of
change in accounting principle (56,116) (104,754) (191,676) (261,591)
Discontinued operations:
Income from operations of CCUK,
net of tax 20,239 5,076 51,238 12,617
Net gain on disposal of CCUK,
net of tax 497,210 --- 497,210 ---
Income from discontinued
operations, net of tax 517,449 5,076 548,448 12,617
Income (loss) before cumulative
effect of change in accounting
principle 461,333 (99,678) 356,772 (248,974)
Cumulative effect of change
in accounting principle for
asset retirement obligations --- --- --- (551)
Net income (loss) 461,333 (99,678) 356,772 (249,525)
Dividends on preferred stock,
net of gains (losses) on
purchases of preferred stock (9,836) (9,496) (28,864) (43,948)
Net income (loss) after deduction
of dividends on preferred stock,
net of gains (losses)
on purchases of preferred stock $451,497 $(109,174) $327,908 $(293,473)
Per common share -
basic and diluted:
Loss from continuing operations
before cumulative effect of
change in accounting principle $(0.30) $(0.53) $(1.00) $(1.41)
Income from discontinued
operations 2.32 0.03 2.48 0.06
Cumulative effect of change
in accounting principle --- --- --- (0.01)
Net income (loss) $2.02 $(0.50) $1.48 $(1.36)
Common shares outstanding -
- basic and diluted 222,841 216,621 221,329 216,516
Adjusted EBITDA (before
restructuring and asset
write-down charges):
Site rental $85,175 $73,709 $248,784 $210,590
Network services and other
(before corporate development
expenses) (11,752) (7,848) (32,154) (25,461)
Adjusted EBITDA before corporate
development expenses 73,423 65,861 216,630 185,129
Corporate development (211) (1,039) (1,021) (3,577)
Total Adjusted EBITDA $73,212 $64,822 $215,609 $181,552
Crown Castle International Corp.
Condensed Consolidated Balance Sheet
(in thousands)
September 30, December 31,
2004 2003
ASSETS
Current assets:
Cash and cash equivalents $908,505 $436,184
Receivables, net of allowance
for doubtful accounts 40,456 38,219
Inventories 8,368 9,615
Prepaid expenses and other current assets 31,916 32,133
Assets of discontinued operations --- 2,052,510
Total current assets 989,245 2,568,661
Property and equipment, net of accumulated
depreciation 3,583,257 3,755,073
Goodwill 267,071 267,071
Deferred financing costs and other assets,
net of accumulated amortization 133,105 146,786
$4,972,678 $6,737,591
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $8,963 $9,785
Accrued interest 32,559 49,063
Accrued compensation and related benefits 9,989 13,397
Deferred rental revenues and other accrued
liabilities 121,303 106,384
Liabilities of discontinued operations --- 353,544
Long-term debt, current maturities --- 267,142
Total current liabilities 172,814 799,315
Long-term debt, less current maturities 1,898,847 3,182,850
Other liabilities 54,037 55,978
Total liabilities 2,125,698 4,038,143
Minority interests 211,176 208,333
Redeemable preferred stock 507,706 506,702
Stockholders' equity 2,128,098 1,984,413
$4,972,678 $6,737,591
Crown Castle International Corp.
Condensed Consolidated Statement of Cash flows
(in thousands)
Three Months Ended
September 30,
2004 2003
Cash flows from operating activities:
Net income (loss) $461,333 $(99,678)
Adjustments to reconcile net income (loss)
to net cash provided by (used for)
operating activities:
Depreciation, amortization and accretion 60,587 60,847
Losses on purchases and redemption
of long-term debt 13,886 18,858
Amortization of deferred financing costs,
discounts on long-term debt
and dividends on preferred stock 2,205 20,215
Minority interests 1,729 (151)
Non-cash general and administrative
compensation charges 1,442 6,205
Equity in losses (earnings) and write-downs
of unconsolidated affiliates 1,413 (3,026)
Income from discontinued operations (517,449) (5,076)
Losses on purchases of preferred stock --- 18,718
Asset write-down charges --- 6,137
Changes in assets and liabilities:
Decrease in receivables 4,369 1,088
Increase (decrease) in deferred rental
revenues and other liabilities 3,980 (3,397)
Decrease in accrued interest (11,146) (21,360)
Increase in inventories, prepaid expenses
and other assets (2,993) (1,362)
Increase (decrease) in accounts payable (128) 982
Net cash provided by (used for)
operating activities 19,228 (1,000)
Cash flows from investing activities:
Investments in affiliates and other 3,214 (22)
Proceeds from disposition of property
and equipment 1,246 4,220
Capital expenditures (9,758) (6,092)
Maturities of investments --- 63,456
Net cash provided by (used for)
investing activities (5,298) 61,562
Cash flows from financing activities:
Proceeds from issuance of capital stock 3,801 2,581
Principal payments on long-term debt (1,275,385) (4,750)
Purchases of capital stock (35,981) (229,222)
Incurrence of financing costs (32) (7,441)
Proceeds from issuance of long-term debt --- 230,000
Purchases and redemption of long-term debt --- (251,867)
Net borrowings (payments) under revolving
credit agreements --- (10,000)
Net cash used for financing
activities (1,307,597) (270,699)
Effect of exchange rate changes on cash 816 89
Discontinued operations 2,008,699 (75)
Net increase (decrease) in cash
and cash equivalents 715,848 (210,123)
Cash and cash equivalents at beginning
of period 192,65 384,634
Cash and cash equivalents at end of period $908,505 $174,511
Supplemental disclosure
of cash flow information:
Interest paid $60,451 $60,914
Income taxes paid 144 85
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 12/31/03 Quarter Ended 3/31/04
US AUS CCIC US AUS CCIC
Revenues
Site Rental 117,686 7,860 125,546 120,695 8,274 128,969
Services 17,561 811 18,372 13,499 1,204 14,703
Total Revenues 135,247 8,671 143,918 134,194 9,478 143,672
Operating Expenses
Site Rental 39,353 3,167 42,520 37,233 3,702 40,935
Services 11,604 534 12,138 10,268 728 10,996
Total Operating Expenses 50,957 3,701 54,658 47,501 4,430 51,931
General & Administrative
Site Rental 4,889 2,451 7,340 4,242 2,380 6,622
Services 15,561 --- 15,561 14,988 --- 14,988
Total General &
Administrative 20,450 2,451 22,901 19,230 2,380 21,610
Operating Cash Flow
Site Rental 73,444 2,242 75,686 79,220 2,192 81,412
Services (9,604) 277 (9,327) (11,757) 476 (11,281)
Total Pre-Overhead Cash
Flow 63,840 2,519 66,359 67,463 2,668 70,131
Corporate Overhead 1,987 --- 1,987 439 --- 439
Adjusted EBITDA 61,853 2,519 64,372 67,024 2,668 69,692
Quarter Ended 12/31/03 Quarter Ended 3/31/04
US AUS CCIC US AUS CCIC
Gross Margins:
Site Rental 67% 60% 66% 69% 55% 68%
Services 34% 34% 34% 24% 40% 25%
Operating Cash Flow
Margins
Site Rental 62% 29% 60% 66% 26% 63%
Services -55% 34% -51% -87% 40% -77%
Adjusted EBITDA Margin 46% 29% 45% 50% 28% 49%
Quarter Ended 6/30/04 Quarter Ended 9/30/04
US AUS CCIC US AUS CCIC
Revenues
Site Rental 120,827 10,536 131,363 125,315 8,775 134,090
Services 17,390 1,123 18,513 13,981 975 14,956
Total Revenues 138,217 11,659 149,876 139,296 9,750 149,046
Operating Expenses
Site Rental 38,332 3,511 41,843 39,169 3,027 42,196
Services 11,591 681 12,272 9,894 892 10,786
Total Operating
Expenses 49,923 4,192 54,115 49,063 3,919 52,982
General &
Administrative
Site Rental 4,693 2,630 7,323 4,211 2,508 6,719
Services 15,362 --- 15,362 15,922 --- 15,922
Total General &
Administrative 20,055 2,630 22,685 20,133 2,508 22,641
Operating Cash Flow
Site Rental 77,802 4,395 82,197 81,935 3,240 85,175
Services (9,563) 442 (9,121) (11,835) 83 (11,752)
Total Pre-Overhead Cash
Flow 68,239 4,837 73,076 70,100 3,323 73,423
Corporate Overhead 371 --- 371 211 --- 211
Adjusted EBITDA 67,868 4,837 72,705 69,889 3,323 73,212
Quarter Ended 6/30/04 Quarter Ended 9/30/04
US AUS CCIC US AUS CCIC
Gross Margins:
Site Rental 68% 67% 68% 69% 66% 69%
Services 33% 39% 34% 29% 9% 28%
Operating Cash Flow
Margins
Site Rental 64% 42% 63% 65% 37% 64%
Services -55% 39% -49% -85% 9% -79%
Adjusted EBITDA Margin 49% 41% 49% 50% 34% 49%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
12/31/2003 03/31/2004 06/30/2004 09/30/2004
Net income (loss) $(148,840) $(64,967) $(39,594) $461,333
Income from discontinued
operations, net of tax 2,159 (14,544) (16,455) (517,449)
Minority interests 1,258 1,346 1,463 1,729
Provision for income taxes 137 153 184 144
Interest expense, amortization
of deferred financing costs
and dividends on preferred
stock 68,906 57,322 56,568 52,281
Interest and other income
(expense) 72,521 25,027 1,349 13,590
Depreciation, amortization and
accretion 61,378 61,225 61,119 60,587
Non-cash general and
administrative
compensation charges 53 2,215 6,203 1,442
Asset write-down charges 6,800 1,948 1,868 0
Restructuring charges
(credits) --- (33) --- (445)
Adjusted EBITDA $64,372 $69,692 $72,705 $73,212
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 12/31/03
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 98,047 27,499 --- 125,546
Services 15,227 3,145 --- 18,372
Total Revenues 113,274 30,644 --- 143,918
Operating Expenses
Site Rental 32,724 9,796 --- 42,520
Services 10,010 2,128 --- 12,138
Total Operating Expenses 42,734 11,924 --- 54,658
General & Administrative
Site Rental 6,769 571 7,340
Services 12,680 1,198 1,683 15,561
Total General & Administrative 19,449 1,769 1,683 22,901
Operating Cash Flow
Site Rental 58,554 17,132 --- 75,686
Services (7,463) (181)(1,683) (9,327)
Total Pre-Overhead Cash Flow 51,091 16,951 (1,683) 66,359
Corporate Overhead 1,987 --- --- 1,987
Adjusted EBITDA 49,104 16,951 (1,683) 64,372
Quarter Ended 12/31/03
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 67% 64% --- 66%
Services 34% 32% --- 34%
Operating Cash Flow Margins
Site Rental 60% 62% --- 60%
Services -49% -6% --- -51%
Adjusted EBITDA Margin 43% 55% N/A 45%
Quarter Ended 3/31/04
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 100,896 28,073 --- 128,969
Services 13,178 1,525 --- 14,703
Total Revenues 114,074 29,598 --- 143,672
Operating Expenses
Site Rental 31,427 9,508 --- 40,935
Services 9,373 1,623 --- 10,996
Total Operating Expenses 40,800 11,131 --- 51,931
General & Administrative
Site Rental 6,163 459 6,622
Services 12,325 989 1,674 14,988
Total General & Administrative 18,488 1,448 1,674 21,610
Operating Cash Flow
Site Rental 63,306 18,106 --- 81,412
Services (8,520) (1,087) (1,674) (11,281)
Total Pre-Overhead Cash Flow 54,786 17,019 (1,674) 70,131
Corporate Overhead 439 --- --- 439
Adjusted EBITDA 54,347 17,019 (1,674) 69,692
Quarter Ended 3/31/04
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 69% 66% --- 68%
Services 29% -6% --- 25%
Operating Cash Flow Margins
Site Rental 63% 64% --- 63%
Services -65% -71% --- -77%
Adjusted EBITDA Margin 48% 58% N/A 49%
Quarter Ended 6/30/04
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 103,650 27,713 --- 131,363
Services 16,110 2,138 265 18,513
Total Revenues 119,760 29,851 265 149,876
Operating Expenses
Site Rental 32,561 9,282 --- 41,843
Services 10,284 1,670 318 12,272
Total Operating Expenses 42,845 10,952 318 54,115
General & Administrative
Site Rental 6,847 476 --- 7,323
Services 13,365 802 1,195 15,362
Total General & Administrative 20,212 1,278 1,195 22,685
Operating Cash Flow
Site Rental 64,242 17,955 --- 82,197
Services (7,539) (334) (1,248) (9,121)
Total Pre-Overhead Cash Flow 56,703 17,621 (1,248) 73,076
Corporate Overhead 371 --- --- 371
Adjusted EBITDA 56,332 17,621 (1,248) 72,705
Quarter Ended 6/30/04
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 69% 67% --- 68%
Services 36% 22% -20% 34%
Operating Cash Flow Margins
Site Rental 62% 65% --- 63%
Services -47% -16% -471% -49%
Adjusted EBITDA Margin 47% 59% -471% 49%
Quarter Ended 9/30/04
Crown
Restricted Atlantic Other CCIC
Revenues
Site Rental 105,585 28,505 --- 134,090
Services 13,087 1,869 --- 14,956
Total Revenues 118,672 30,374 --- 149,046
Operating Expenses
Site Rental 32,549 9,647 --- 42,196
Services 8,854 1,837 95 10,786
Total Operating Expenses 41,403 11,484 95 52,982
General & Administrative
Site Rental 6,278 441 --- 6,719
Services 12,903 848 2,171 15,922
Total General & Administrative 19,181 1,289 2,171 22,641
Operating Cash Flow
Site Rental 66,758 18,417 --- 85,175
Services (8,670) (816) (2,266) (11,752)
Total Pre-Overhead Cash Flow 58,088 17,601 (2,266) 73,423
Corporate Overhead 211 --- --- 211
Adjusted EBITDA 57,877 17,601 (2,266) 73,212
Quarter Ended 9/30/04
Crown
Restricted Atlantic Other CCIC
Gross Margins:
Site Rental 69% 66% --- 69%
Services 32% 2% --- 28%
Operating Cash Flow Margins
Site Rental 63% 65% --- 64%
Services -66% -44% --- -79%
Adjusted EBITDA Margin 49% 58% N/A 49%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
12/31/2003 03/31/2004 06/30/2004 09/30/2004
Net income (loss) $(148,840) $(64,967) $(39,594) $461,333
Income from discontinued
operations, net of tax 2,159 (14,544) (16,455) (517,449)
Minority interests 1,258 1,346 1,463 1,729
Provision for income taxes 137 153 184 144
Interest expense, amortization
of deferred financing costs
and dividends on preferred
stock 68,906 57,322 56,568 52,281
Interest and other income
(expense) 72,521 25,027 1,349 13,590
Depreciation, amortization and
accretion 61,378 61,225 61,119 60,587
Non-cash general and
administrative compensation
charges 53 2,215 6,203 1,442
Asset write-down charges 6,800 1,948 1,868 0
Restructuring charges
(credits) --- (33) --- (445)
Adjusted EBITDA $64,372 $69,692 $72,705 $73,212
CCI FACT SHEET Q3 2004
$ in thousands
Q3 '03 Q3 '04 % Change
CCUSA and Crown Atlantic
Site Rental Revenue $113,387 $125,315 11%
Ending Sites 10,718 10,609 -1%
CCAUS
Site Rental Revenue $6,740 $8,775 30%
Ending Sites 1,387 1,388 0%
TOTAL CCIC
Site Rental Revenue $120,127 $134,090 12%
Ending Sites 12,105 11,997 -1%
Ending Cash and Investments $255,672 $908,505
Debt
Bank Debt $980,290 $180,000
Bonds $2,174,948 $1,718,847
12 3/4% Preferred Stock $46,769 $0
6 1/4% & 8 1/4% Convertible
Preferred Stock $506,367 $507,706
Total Debt $3,708,374 $2,406,553
Leverage Ratios
Net Bank Debt / EBITDA* 2.8X N/A
Net Bank Debt + Bonds / EBITDA* 11.4X 3.4X
Total Net Debt / EBITDA* 13.3X 5.1X
*Last Quarter Annualized Adjusted
EBITDA $259,288 $292,848
SOURCE Crown Castle International Corp.
-0- 10/26/2004
/CONTACT: W. Benjamin Moreland, CFO, or Jay Brown, Treasurer, both of
Crown Castle International Corp., +1-713-570-3000/
/Web site: http://www.crowncastle.com /
(CCI)
CO: Crown Castle International Corp.
ST: Texas
IN: CPR TLS
SU: ERN ERP CCA MAV
JS-CD
-- DATU042 --
9450 10/26/2004 16:01 EDT http://www.prnewswire.com