Crown Castle International Reports Second Quarter 2012 Results; Raises 2012 Outlook
"We had an excellent second quarter, exceeding the high-end of our Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA and AFFO," stated
CONSOLIDATED FINANCIAL RESULTS
Total revenue for the second quarter of 2012 increased 17% to
Funds from operations ("FFO") increased 16% to
Net income attributable to CCIC stockholders for the second quarter of 2012 increased
FINANCING AND INVESTING ACTIVITIES
During the second quarter of 2012,
Additionally, during the second quarter of 2012,
AGREEMENT WITH T-MOBILE USA
During
"I am very pleased with the strong performance of our business during the second quarter as we grew year-over-year AFFO per share by 17%," stated
OUTLOOK
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
The following Outlook table is based on current expectations and assumptions and assumes a US dollar to Australian dollar exchange rate of
The following table sets forth
(in millions, except per share amounts) | Third Quarter 2012 | Full Year 2012 | ||
Site rental revenues | $530 to $535 | $2,083 to $2,093 | ||
Site rental cost of operations | $130 to $135 | $514 to $524 | ||
Site rental gross margin | $397 to $402 | $1,561 to $1,571 | ||
Adjusted EBITDA | $387 to $392 | $1,518 to $1,528 | ||
Interest expense and amortization of deferred financing costs(a)(b) | $143 to $147 | $568 to $578 | ||
FFO | $191 to $231 | $772 to $862 | ||
AFFO | $211 to $216 | $847 to $857 | ||
Net income (loss) | $17 to $51 | $206 to $281 | ||
Net income (loss) per share - diluted(c) | $0.06 to $0.18 | $0.71 to $0.96 | ||
(a) Inclusive of $25 million and $99 million, respectively, of non-cash expense. | ||||
(b) Approximately $16 million and $65 million, respectively, of the total non-cash expense relates to the amortization of interest rate swaps, all of which has been cash settled in prior periods. | ||||
(c) Represents net income (loss) per common share, based on 291.2 million diluted shares outstanding as of June 30, 2012. |
CONFERENCE CALL DETAILS
A telephonic replay of the conference call will be available from
The
Non-GAAP Financial Measures and Other Calculations
This press release includes presentations of Adjusted EBITDA, funds from operations and adjusted funds from operations, which are non-GAAP financial measures. These non-GAAP financial measures are not intended as alternative measures of operating results or cash flow from operations (as determined in accordance with Generally Accepted Accounting Principles ("GAAP")). Each of the amounts included in the calculation of Adjusted EBITDA, FFO, and AFFO are computed in accordance with GAAP, with the exception of: (1) sustaining capital expenditures, which is not defined under GAAP and (2) our adjustment to the income tax provision in calculations of FFO and AFFO.
Our measures of Adjusted EBITDA, FFO and AFFO may not be comparable to similarly titled measures of other companies, including other companies in the tower sector or those reported by REITs. FFO and AFFO presented are not necessarily indicative of the operating results that would have been achieved had we converted to a REIT, nor are they necessarily indicative of future financial position or operating results. Our FFO and AFFO may not be comparable to those reported in accordance with
Adjusted EBITDA, recurring cash flow, FFO and AFFO 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.
Adjusted EBITDA.
Funds from operations.
Adjusted funds from operations.
Sustaining capital expenditures. Crown Castle defines sustaining capital expenditures as either (1) corporate related capital improvements, such as information technology equipment and office equipment or (2) capital improvements to tower sites that enable our customers' ongoing quiet enjoyment of the tower.
The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures. The components in these tables may not sum to the total due to rounding.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures: | ||
Adjusted EBITDA for the three months ended June 30, 2012 and 2011 is computed as follows: | ||
For the Three Months Ended | ||
June 30, 2012 | June 30, 2011 | |
(in millions) | ||
Net income (loss) | $ 117.1 | $ 31.0 |
Adjustments to increase (decrease) net income (loss): | ||
Asset write-down charges | 3.6 | 6.2 |
Acquisition and integration costs | 7.5 | 0.5 |
Depreciation, amortization and accretion | 152.5 | 138.2 |
Amortization of prepaid lease purchase price adjustments | 3.9 | -- |
Interest expense and amortization of deferred financing costs | 144.9 | 126.5 |
Gains (losses) on retirement of long-term obligations | 7.5 | -- |
Interest income | (0.4) | (0.2) |
Other income (expense) | 2.2 | 4.1 |
Benefit (provision) for income taxes | (68.4) | 5.8 |
Stock-based compensation expense | 8.0 | 7.9 |
Adjusted EBITDA | $ 378.5 | $ 319.9 |
Other Calculations:
Adjusted EBITDA for the quarter ending September 30, 2012 and the year ending December 31, 2012 is forecasted as follows: | ||||
Q3 2012 | Full Year 2012 | |||
(in millions) | Outlook | Outlook | ||
Net income (loss) | $17 to $51 | $206 to $281 | ||
Adjustments to increase (decrease) net income (loss): | ||||
Asset write-down charges | $4 to $6 | $12 to $22 | ||
Acquisition and integration costs | $3 to $4 | $15 to $17 | ||
Depreciation, amortization and accretion | $151 to $156 | $592 to $607 | ||
Amortization of prepaid lease purchase price adjustments | $3 to $5 | $14 to $16 | ||
Interest expense and amortization of deferred financing costs(a)(b) | $143 to $147 | $568 to $578 | ||
Gains (losses) on retirement of long-term obligations | $0 to $0 | $15 to $15 | ||
Interest income | $(1) to $0 | $(2) to $(1) | ||
Other income (expense) | $0 to $2 | $4 to $6 | ||
Benefit (provision) for income taxes | $22 to $32 | $(16) to $7 | ||
Stock-based compensation expense | $16 to $18 | $43 to $48 | ||
Adjusted EBITDA | $387 to $392 | $1,518 to $1,528 | ||
(a) Inclusive of approximately $25 million and $99 million, respectively, of non-cash expense. | ||||
(b) Approximately $16 million and $65 million, respectively, of the total non-cash expense relates to the amortization of interest rate swaps, all of which has been cash settled in prior periods. |
FFO and AFFO for the quarter ending September 30, 2012 and the year ending December 31, 2012 are forecasted as follows: | ||||
Q3 2012 | Full Year 2012 | |||
(in millions) | Outlook | Outlook | ||
Net income | $17 to $51 | $206 to $281 | ||
Adjusted tax provision (a) | $24 to $34 | $(6) to $17 | ||
Real estate related depreciation, amortization and accretion | $145 to $148 | $576 to $579 | ||
FFO | $191 to $231 | $772 to $862 | ||
FFO (from above) | $191 to $231 | $772 to $862 | ||
Straight-line revenue | $(60) to $(55) | $(205) to $(200) | ||
Straight-line expense | $10 to $15 | $49 to $53 | ||
Stock-based compensation expense | $16 to $18 | $43 to $48 | ||
Non-real estate related depreciation, amortization and accretion | $6 to $8 | $16 to $28 | ||
Amortization of deferred financing costs, debt discounts and interest rate swaps | $24 to $26 | $95 to $100 | ||
Other (income) expense(b) | $2 to $3 | $3 to $5 | ||
Gains (losses) on retirement of long-term obligations | -- | $15 to $15 | ||
Acquisition and integration costs | $3 to $4 | $15 to $17 | ||
Asset write-down charges | $4 to $6 | $12 to $22 | ||
Capital improvement capital expenditures | $(4) to $(3) | $(16) to $(14) | ||
Corporate capital expenditures | $(4) to $(3) | $(13) to $(10) | ||
AFFO | $211 to $216 | $847 to $857 | ||
(a) Adjusts the income tax provision to reflect our estimate of the cash taxes had we been a REIT, which predominately relates to foreign taxes paid. As a result, income tax expense (benefit) is lower by the amount of the adjustment. | ||||
(b) Primarily includes unrealized (gains) losses on foreign exchange. |
FFO and AFFO for the three months ended June 30, 2012 and 2011 are computed as follows: | ||
For the Three Months Ended | ||
(in millions) | June 30, 2012 | June 30, 2011 |
Net income | $ 117.1 | $ 31.0 |
Adjusted tax provision (a) | (69.1) | 4.9 |
Real estate related depreciation, amortization and accretion | 147.3 | 132.8 |
FFO | $ 195.3 | $ 168.8 |
Weighted average common shares outstanding — diluted | 291.2 | 287.0 |
FFO per share | $ 0.67 | $ 0.59 |
FFO (from above) | 195.3 | 168.8 |
Straight-line revenue | (44.7) | (44.8) |
Straight-line expense | 13.1 | 10.6 |
Stock-based compensation expense | 8.0 | 7.9 |
Non-real estate related depreciation, amortization and accretion | 5.2 | 5.3 |
Amortization of deferred financing costs, debt discounts and interest rate swaps | 24.3 | 25.7 |
Other (income) expense(b) | 2.2 | 4.1 |
Losses (gains) on retirement of long-term obligations | 7.5 | -- |
Acquisition and integration costs | 7.5 | 0.5 |
Asset write-down charges | 3.6 | 6.2 |
Capital improvement capital expenditures | (4.0) | (2.6) |
Corporate capital expenditures | (3.3) | (1.9) |
AFFO | $ 214.8 | $ 179.8 |
Weighted average common shares outstanding — diluted | 291.2 | 287.0 |
AFFO per share | $ 0.74 | $ 0.63 |
(a) Adjusts the income tax provision to reflect our estimate of the cash taxes had we been a REIT, which predominately relates to foreign taxes paid. As a result, income tax expense (benefit) is lower by the amount of the adjustment. | ||
(b) Primarily includes unrealized (gains) losses on foreign exchange. |
Other Calculations:
The components of interest expense and amortization of deferred financing costs for the three months ended June 30, 2012 and 2011 are as follows: | ||
For the Three Months Ended | ||
(in millions) | June 30, 2012 | June 30, 2011 |
Interest expense on debt obligations | $ 120.6 | $ 100.8 |
Amortization of deferred financing costs | 5.3 | 3.8 |
Amortization of adjustments on long-term debt | 3.0 | 4.0 |
Amortization of interest rate swaps | 16.3 | 18.0 |
Other, net | (0.2) | -- |
Interest expense and amortization of deferred financing costs | $ 144.9 | $ 126.5 |
The components of interest expense and amortization of deferred financing costs for the quarter ending September 30, 2012 and the year ending December 31, 2012 are forecasted as follows: | ||||
Q3 2012 | Full Year 2012 | |||
(in millions) | Outlook | Outlook | ||
Interest expense on debt obligations | $119 to $122 | $473 to $478 | ||
Amortization of deferred financing costs | $5 to $6 | $20 to $21 | ||
Amortization of adjustments on long-term debt | $3 to $4 | $13 to $14 | ||
Amortization of interest rate swaps | $15 to $17 | $64 to $67 | ||
Other, net | $(1) to $1 | $0 to $(2) | ||
Interest expense and amortization of deferred financing costs | $143 to $147 | $568 to $578 |
Debt balances and maturity dates as of June 30, 2012: | ||
(in millions) | Face Value | Final Maturity |
Revolver | $ -- | January 2017 |
Term Loan A | 493.8 | January 2017 |
Term Loan B | 1,592.0 | January 2019 |
9% Senior Notes Due 2015 | 829.6 | January 2015 |
7.5% Senior Notes Due 2013 | 0.1 | December 2013 |
7.75% Senior Secured Notes Due 2017 | 964.9 | May 2017 |
7.125% Senior Notes Due 2019 | 500.0 | November 2019 |
Senior Secured Notes, Series 2009-1(a) | 207.5 | Various |
Senior Secured Tower Revenue Notes, Series 2010-1-2010-3(b) | 1,900.0 | Various |
Senior Secured Tower Revenue Notes, Series 2010-4-2010-6(c) | 1,550.0 | Various |
WCP Secured Wireless Site Contracts Revenue Notes, Series 2010-1(d) | 317.3 | November 2040 |
Capital Leases and Other Obligations | 79.0 | Various |
Total Debt | $ 8,434.1 | |
Less: Cash and Cash Equivalents(e) | 96.2 | |
Net Debt | $ 8,337.9 | |
(a) The Senior Secured Notes, Series 2009-1 consist of $137.5 million of principal as of June 30, 2012 that amortizes during the period beginning January 2010 and ending in 2019, and $70.0 million of principal that amortizes during the period beginning in 2019 and ending in 2029. | ||
(b) The Senior Secured Tower Revenue Notes Series 2010-1, 2010-2 and 2010-3 have principal amounts of $300.0 million, $350.0 million, and $1,250.0 million with anticipated repayment dates of 2015, 2017, and 2020, respectively. | ||
(c) The Senior Secured Tower Revenue Notes Series 2010-4, 2010-5 and 2010-6 have principal amounts of $250.0 million, $300.0 million and $1,000.0 million with anticipated repayment dates of 2015, 2017 and 2020, respectively. | ||
(d) The WCP Secured Wireless Site Contracts Revenue Notes, Series 2010-1 ("WCP Securitized Notes") were assumed in connection with the WCP acquisition. If WCP Securitized Notes are not repaid in full by their anticipated repayment dates in 2015, the applicable interest rate increases by an additional approximately 5% per annum. If the WCP Securitized Notes are not repaid in full by their rapid amortization date of 2017, monthly principal payments commence. | ||
(e) Excludes restricted cash. |
Sustaining capital expenditures for the three months ended June 30, 2012 and 2011 is computed as follows: | ||
For the Three Months Ended | ||
(in millions) | June 30, 2012 | June 30, 2011 |
Capital Expenditures | $ 94.6 | $ 64.0 |
Less: Land purchases | 29.1 | 30.5 |
Less: Tower improvements and other | 30.4 | 19.4 |
Less: Construction of towers | 27.9 | 9.6 |
Sustaining capital expenditures | $ 7.3 | $ 4.5 |
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, Outlook and estimates regarding (i) the contribution and impact of the NextG acquisition, the assets acquired from WCP and the
- Our business depends on the demand for wireless communications and wireless infrastructure, and we may be adversely affected by any slowdown in such demand. Additionally, a reduction in carrier network investment may materially and adversely affect our business (including reducing demand for new tenant additions and network services).
- A substantial portion of our revenues is derived from a small number of customers, and the loss, consolidation or financial instability of any of our limited number of customers may materially decrease revenues and reduce demand for our wireless infrastructure and network services.
- Our substantial level of indebtedness could adversely affect our ability to react to changes in our business, and the terms of our debt instruments limit our ability to take a number of actions that our management might otherwise believe to be in our best interests. In addition, if we fail to comply with our covenants, our debt could be accelerated.
- We have a substantial amount of indebtedness. In the event we do not repay or refinance such indebtedness, we could face substantial liquidity issues and might be required to issue equity securities or securities convertible into equity securities, or sell some of our assets to meet our debt payment obligations.
- Sales or issuances of a substantial number of shares of our common stock may adversely affect the market price of our common stock.
- As a result of competition in our industry, including from some competitors with significantly more resources or less debt than we have, we may find it more difficult to achieve favorable rental rates on our new or renewing customer contracts.
- The business model for our small cell operations contains differences from our traditional site rental business, resulting in different operational risks. If we do not successfully operate that business model or identify and manage those operational risks, such operations may produce results that are less than anticipated.
- New technologies may significantly reduce demand for our wireless infrastructure and negatively impact our revenues.
- New wireless technologies may not deploy or be adopted by customers as rapidly or in the manner projected.
- If we fail to retain rights to the land under our wireless infrastructure, including the land interests under our towers, our business may be adversely affected.
- Our network services business has historically experienced significant volatility in demand, which reduces the predictability of our results.
- If we fail to comply with laws and regulations which regulate our business and which may change at any time, we may be fined or even lose our right to conduct some of our business.
- If radio frequency emissions from wireless handsets or equipment on our wireless infrastructure are demonstrated to cause negative health effects, potential future claims could adversely affect our operations, costs and revenues.
- The expansion and development of our business, including through acquisitions, increased product offerings, and other strategic growth opportunities, may cause disruptions in our business, which may have an adverse effect on our business and financial results.
- 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.
-
We may be adversely affected by our 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
CROWN CASTLE INTERNATIONAL CORP. | ||
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) | ||
(in thousands) | ||
June 30, | December 31, | |
2012 | 2011 | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 96,175 | $ 80,120 |
Restricted cash | 275,948 | 252,368 |
Receivables, net | 124,154 | 77,258 |
Deferred income tax assets | 93,889 | 85,385 |
Prepaid expenses, deferred site rental receivables and other current assets, net | 148,944 | 104,021 |
Total current assets | 739,110 | 599,152 |
Deferred site rental receivables, net | 736,225 | 621,103 |
Property and equipment, net | 5,347,867 | 4,861,227 |
Goodwill | 2,776,121 | 2,035,390 |
Other intangible assets, net | 2,391,292 | 2,178,182 |
Long-term prepaid rent, deferred financing costs and other assets, net | 607,061 | 250,042 |
$ 12,597,676 | $ 10,545,096 | |
LIABILITIES AND EQUITY | ||
Current liabilities: | ||
Accounts payable and other accrued liabilities | $ 214,491 | $ 202,351 |
Deferred revenues and below-market tenant leases | 195,330 | 167,238 |
Current maturities of debt and other obligations | 79,303 | 32,517 |
Total current liabilities | 489,124 | 402,106 |
Debt and other long-term obligations | 8,307,783 | 6,853,182 |
Deferred income tax liabilities | 81,665 | 97,562 |
Below-market tenant leases, deferred ground lease payable and other liabilities | 853,106 | 500,350 |
Total liabilities | 9,731,678 | 7,853,200 |
Redeemable convertible preferred stock | -- | 305,032 |
CCIC Stockholders' equity | 2,864,441 | 2,386,245 |
Noncontrolling interest | 1,557 | 619 |
Total equity | 2,865,998 | 2,386,864 |
$ 12,597,676 | $ 10,545,096 |
CROWN CASTLE INTERNATIONAL CORP. | ||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) | ||||
(in thousands) | ||||
Three Months Ended | Six Months Ended | |||
June 30, | June 30, | |||
2012 | 2011 | 2012 | 2011 | |
Net revenues: | ||||
Site rental | $ 517,588 | $ 457,103 | $ 1,015,117 | $ 913,299 |
Network services and other | 67,923 | 43,233 | 122,139 | 86,076 |
Total net revenues | 585,511 | 500,336 | 1,137,256 | 999,375 |
Operating expenses: | ||||
Costs of operations (exclusive of depreciation, amortization and accretion): | ||||
Site rental | 131,571 | 121,143 | 254,442 | 239,558 |
Network services and other | 40,262 | 25,906 | 71,783 | 53,130 |
General and administrative | 47,078 | 41,259 | 98,079 | 86,003 |
Asset write-down charges | 3,646 | 6,205 | 6,690 | 10,606 |
Acquisition and integration costs | 7,495 | 490 | 9,175 | 1,044 |
Depreciation, amortization and accretion | 152,482 | 138,191 | 291,882 | 275,464 |
Total operating expenses | 382,534 | 333,194 | 732,051 | 665,805 |
Operating income (loss) | 202,977 | 167,142 | 405,205 | 333,570 |
Interest expense and amortization of deferred financing costs | (144,940) | (126,483) | (282,412) | (253,169) |
Gains (losses) on retirement of long-term obligations | (7,518) | -- | (14,586) | -- |
Net gain (loss) on interest rate swaps | -- | -- | -- | -- |
Interest income | 382 | 208 | 736 | 379 |
Other income (expense) | (2,249) | (4,098) | (3,326) | (4,704) |
Income (loss) before income taxes | 48,652 | 36,769 | 105,617 | 76,076 |
Benefit (provision) for income taxes | 68,432 | (5,755) | 61,737 | (4,938) |
Net income (loss) | 117,084 | 31,014 | 167,354 | 71,138 |
Less: Net income (loss) attributable to the noncontrolling interest | 1,071 | 143 | 1,310 | 250 |
Net income (loss) attributable to CCIC stockholders | 116,013 | 30,871 | 166,044 | 70,888 |
Dividends on preferred stock | -- | (5,202) | (2,629) | (10,403) |
Net income (loss) attributable to CCIC stockholders after deduction of dividends on preferred stock | $ 116,013 | $ 25,669 | $ 163,415 | $ 60,485 |
Net income (loss) attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share: | ||||
Basic | $ 0.40 | $ 0.09 | $ 0.57 | $ 0.21 |
Diluted | $ 0.40 | $ 0.09 | $ 0.57 | $ 0.21 |
Weighted average common shares outstanding (in thousands): | ||||
Basic | 290,649 | 285,280 | 287,781 | 286,139 |
Diluted | 291,203 | 287,026 | 289,029 | 288,215 |
CROWN CASTLE INTERNATIONAL CORP. | ||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) | ||
(in thousands) | ||
Six Months Ended | ||
June 30, | ||
2012 | 2011 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 167,354 | $ 71,138 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Depreciation, amortization and accretion | 291,882 | 275,464 |
Gains (losses) on retirement of long-term obligations | 14,586 | -- |
Amortization of deferred financing costs and other non-cash interest | 48,780 | 51,482 |
Stock-based compensation expense | 17,105 | 17,254 |
Asset write-down charges | 6,690 | 10,606 |
Deferred income tax benefit (provision) | (65,544) | 2,545 |
Other adjustments, net | (41) | 4,309 |
Changes in assets and liabilities, excluding the effects of acquisitions: | ||
Increase (decrease) in liabilities | (7,583) | (47,068) |
Decrease (increase) in assets | (148,887) | (101,921) |
Net cash provided by (used for) operating activities | 324,342 | 283,809 |
Cash flows from investing activities: | ||
Payments for acquisition of businesses, net of cash acquired | (1,199,316) | (12,375) |
Capital expenditures | (159,697) | (116,690) |
Other investing activities, net | 1,188 | 829 |
Net cash provided by (used for) investing activities | (1,357,825) | (128,236) |
Cash flows from financing activities: | ||
Proceeds from issuance of long-term debt | 2,100,000 | -- |
Proceeds from issuance of capital stock | 238 | 757 |
Principal payments on debt and other long-term obligations | (34,744) | (16,792) |
Purchases and redemptions of long-term debt | (699,486) | -- |
Purchases of capital stock | (35,673) | (192,563) |
Borrowings under revolving credit facility | -- | 102,000 |
Payments under revolving credit facility | (251,000) | (71,000) |
Payments for financing costs | (40,237) | (82) |
Net decrease (increase) in restricted cash | 12,620 | 27,088 |
Dividends on preferred stock | (2,481) | (9,939) |
Net cash provided by (used for) financing activities | 1,049,237 | (160,531) |
Effect of exchange rate changes on cash | 301 | 543 |
Net increase (decrease) in cash and cash equivalents | 16,055 | (4,415) |
Cash and cash equivalents at beginning of period | 80,120 | 112,531 |
Cash and cash equivalents at end of period | $ 96,175 | $ 108,116 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 234,862 | 201,541 |
Income taxes paid | 2,556 | 3,543 |
CROWN CASTLE INTERNATIONAL CORP. | ||||||||||||
Summary Fact Sheet | ||||||||||||
(dollars in millions) | ||||||||||||
Quarter Ended | ||||||||||||
9/30/2011 | 12/31/2011 | 3/31/2012 | 6/30/2012 | |||||||||
CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | |
Revenues | ||||||||||||
Site Rental | $ 441.1 | $ 27.8 | $ 468.9 | $ 443.8 | $ 27.6 | $ 471.3 | $ 468.1 | $ 29.4 | $ 497.5 | $ 487.8 | $ 29.8 | $ 517.6 |
Services | 40.9 | 4.1 | 45.0 | 43 | 5.2 | 48.1 | 47.0 | 7.2 | 54.2 | 62.0 | 5.9 | 67.9 |
Total Revenues | 482.0 | 31.9 | 513.9 | 486.7 | 32.7 | 519.5 | 515.1 | 36.7 | 551.7 | 549.8 | 35.7 | 585.5 |
Operating Expenses | ||||||||||||
Site Rental | 112.8 | 8.9 | 121.8 | 111.4 | 8.6 | 120.1 | 113.9 | 8.9 | 122.9 | 123.1 | 8.5 | 131.6 |
Services | 22.7 | 2.4 | 25.1 | 25.8 | 3.0 | 28.8 | 26.8 | 4.7 | 31.5 | 36.8 | 3.4 | 40.3 |
Total Operating Expenses | 135.6 | 11.3 | 146.8 | 137.3 | 11.6 | 148.9 | 140.7 | 13.6 | 154.4 | 159.9 | 11.9 | 171.8 |
General & Administrative | 37.3 | 5.6 | 42.9 | 38.1 | 6.4 | 44.6 | 43.7 | 7.3 | 51.0 | 41.5 | 5.5 | 47.1 |
Add: Stock-Based Compensation | 7.7 | 0.6 | 8.3 | 7.7 | 1.5 | 9.2 | 9.0 | 2.1 | 11.2 | 8.1 | -- | 8.0 |
Add: Amortization of prepaid lease purchase price adjustments | -- | -- | -- | -- | -- | -- | 2.5 | -- | 2.5 | 3.9 | -- | 3.9 |
Adjusted EBITDA | $ 316.8 | $ 15.6 | $ 332.4 | $ 319.0 | $ 16.2 | $ 335.2 | $ 342.3 | $ 17.8 | $ 360.1 | $ 360.3 | $ 18.2 | $ 378.5 |
Quarter Ended | ||||||||||||
9/30/2011 | 12/31/2011 | 3/31/2012 | 6/30/2012 | |||||||||
CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | CCUSA | CCAL | CCIC | |
Gross Margins: | ||||||||||||
Site Rental | 74% | 68% | 74% | 75% | 69% | 75% | 76% | 70% | 75% | 75% | 71% | 75% |
Services | 44% | 42% | 44% | 40% | 42% | 40% | 43% | 35% | 42% | 41% | 42% | 41% |
Adjusted EBITDA | 66% | 49% | 65% | 66% | 50% | 65% | 66% | 49% | 65% | 66% | 51% | 65% |
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP Financial Measure: | ||||
dollars in millions | ||||
Quarter Ended | ||||
9/30/2011 | 12/31/2011 | 3/31/2012 | 6/30/2012 | |
Net income (loss) | $ 51.4 | $ 48.9 | $ 50.3 | $ 117.1 |
Adjustments to increase (decrease) net income (loss): | ||||
Asset write-down charges | 3.1 | 8.6 | 3.0 | 3.6 |
Acquisition and integration costs | 0.6 | 1.6 | 1.7 | 7.5 |
Depreciation, amortization and accretion | 138.5 | 139.0 | 139.4 | 152.5 |
Amortization of prepaid lease purchase price adjustments | -- | -- | 2.5 | 3.9 |
Interest expense, amortization of deferred financing costs | 127.1 | 127.3 | 137.5 | 144.9 |
Gains (losses) on retirement of long-term obligations | -- | -- | 7.1 | 7.5 |
Interest income | (0.2) | (0.1) | (0.4) | (0.4) |
Other income (expense) | 0.7 | 0.1 | 1.1 | 2.2 |
Benefit (provision) for income taxes | 2.8 | 0.6 | 6.7 | (68.4) |
Stock-based compensation | 8.3 | 9.2 | 11.2 | 8.0 |
Adjusted EBITDA | $ 332.4 | $ 335.2 | $ 360.1 | $ 378.5 |
Note: Components may not sum to total due to rounding. |
CCI Fact Sheet | |||
(dollars in millions) | |||
Quarter Ended | |||
6/30/2011 | 6/30/2012 | % Change | |
CCUSA | |||
Site Rental Revenues | $ 429.5 | $ 487.8 | 14% |
Ending Towers (a) | 22,238 | 22,661 | 2% |
CCAL | |||
Site Rental Revenues | $ 27.6 | $ 29.8 | 8% |
Ending Towers (a) | 1,596 | 1,654 | 4% |
Total CCIC | |||
Site Rental Revenues | $ 457.1 | $ 517.6 | 13% |
Ending Towers (a) | 23,834 | 24,315 | 2% |
Ending Cash and Cash Equivalents | $ 108.1 * | $ 96.2 * | |
Total Face Value of Debt | $ 6,897.1 | $ 8,434.1 | |
Net Debt | $ 6,789.0 | $ 8,337.9 | |
Net Leverage Ratios:(b) | |||
Net Debt / Adjusted EBITDA | 5.3X | 5.5X | |
Last Quarter Annualized Adjusted EBITDA | $ 1,279.6 | $ 1,514.1 | |
*Excludes Restricted Cash | |||
(a) Exclusive of DAS | |||
(b) Based on Face Values | |||
Note: Components may not sum to total due to rounding. |
CONTACT:Jay Brown , CFOFiona McKone , VP - FinanceCrown Castle International Corp. 713-570-3050