By John Kell
Crown Castle International Corp. (CCI) reported a wider
fourth-quarter loss, as the cell-tower company recorded charges
tied to the company's conversion to a real-estate investment
trust.
Crown Castle kicked off the new year as a REIT, a designation
typically used for companies managing real estate for profit and
allowing firms to avoid most corporate taxes as long as they pay at
least 90% of their taxable income through dividends to
shareholders.
The company's results have benefited from a need for more and
quicker data, causing wireless carriers to spend heavily to upgrade
equipment in recent years. Crown Castle has also expanded through
acquisitions, including a late 2013 deal with AT&T Inc. (T) to
buy the rights to about 9,100 towers and fully acquire 600
towers.
For the latest quarter, Crown Castle reported a loss of $23.5
million, or 11 cents a share, compared with a prior-year loss of
$19.5 million, or seven cents a share. The latest period included
$110 million in income tax provisions, mostly tied to a one-time
charge related to the company's REIT conversion.
Adjusted funds from operations grew to $1.12 a share from 83
cents.
Revenue jumped 18% to $798.4 million, above the $746 million
projected by analysts surveyed by Thomson Reuters.
For the current quarter, Crown Castle sees per-share earnings
between 27 cents to 37 cents, above the 18-cent profit analysts
expected.
Crown Castle now sees full-year earnings between $1.16 to $1.41
a share. Analysts had predicted 84 cents.
Shares climbed 2.4% to $75.50 in after-hours trading.
Write to John Kell at john.kell@wsj.com
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