2014 HIGHLIGHTS
- Delivered Organic Site Rental Revenue growth of $156
million in 2014
- Increased our annual dividend on our common stock to
$3.28 per share
- Significantly increased our small cell networks to over
7,000 miles of fiber supporting over 14,000 nodes on-air or under
construction
- Successfully completed the integration of approximately
9,700 towers from the AT&T tower transaction
Crown Castle International Corp. (NYSE:CCI) ("Crown Castle") today
reported results for the quarter and year ended December 31,
2014.
"We delivered another quarter of great results during the fourth
quarter, wrapping up a very strong year in 2014," stated Ben
Moreland, Crown Castle's President and Chief Executive Officer. "We
continue to demonstrate our ability to grow our business,
generating Organic Site Rental Revenue growth of $156 million in
2014. In addition to the excellent financial results achieved
during the year, 2014 was a pivotal year on many fronts. In 2014,
we commenced operations as a REIT, meaningfully increased our
common stock dividend, substantially grew our small cell networks,
and integrated the AT&T tower portfolio. I believe these
accomplishments position our portfolio of US-focused,
mission-critical wireless infrastructure to deliver significant
shareholder value through long-term growth in our dividend and
AFFO. Looking at 2015, as evidenced by our increased full year
Outlook, we expect all four major US wireless carriers to continue
to make investments to upgrade and enhance their networks to meet
growing consumer demand."
CONSOLIDATED FINANCIAL RESULTS
Total revenues for the fourth quarter of 2014 increased 21% to
$968 million from $798 million for the same period in 2013. Site
rental revenues for the fourth quarter of 2014 increased $110
million, or 17%, to $761 million from $651 million for the same
period in the prior year. Site rental gross margin, defined as site
rental revenues less site rental cost of operations, increased $59
million, or 13%, to $523 million in the fourth quarter of 2014 from
$464 million in the same period in 2013. Adjusted EBITDA for the
fourth quarter of 2014 increased $78 million, or 17%, to $546
million from $468 million in the same period in 2013.
Adjusted Funds from Operations ("AFFO") increased 19% to $346
million in the fourth quarter of 2014, compared to $291 million in
the fourth quarter of 2013. AFFO per share increased 14% to $1.04
in the fourth quarter of 2014, compared to $0.91 in the fourth
quarter of 2014. Funds from Operations ("FFO") increased 118% to
$390 million in the fourth quarter of 2014, compared to $179
million in the fourth quarter of 2013. FFO per share increased 109%
to $1.17 in the fourth quarter of 2014, compared to $0.56 in the
fourth quarter of 2013.
Net income attributable to CCIC common stockholders for the
fourth quarter of 2014 was $137 million, compared to $35 million of
net loss for the same period in 2013. Net income attributable to
CCIC common stockholders per common share was $0.41 for the fourth
quarter of 2014, compared to a net loss attributable to CCIC common
stockholders of $0.11 per common share in the fourth quarter of
2013.
Total revenues for full year 2014 increased 22% to $3.69 billion
from $3.02 billion for full year 2013. Site rental revenues for
full year 2014 increased $503 million, or 20%, to $3.01 billion
from $2.50 billion for full year 2013. Site rental gross
margin, defined as site rental revenues less site rental cost of
operations, increased $284 million, or 16%, to $2.06 billion for
full year 2014 from $1.78 billion for full year 2013. Adjusted
EBITDA for full year 2014 increased $343 million, or 19%, to $2.14
billion from $1.79 billion for full year 2013.
AFFO increased 27% to $1.40 billion for full year 2014, compared
to $1.10 billion for full year 2013. AFFO per share increased
14% to $4.19 in full year 2014, compared to $3.67 for full year
2013. FFO increased 56% to $1.35 billion for full year 2014,
compared to $866 million for full year 2013. FFO per share
increased 40% to $4.06 for full year 2014, compared to $2.89 for
full year 2013.
Net income attributable to CCIC common stockholders for full
year 2014 was $347 million, compared to $79 million of net income
for full year 2013. Net income attributable to CCIC common
stockholders per common share was $1.04 for full year 2014,
compared to $0.26 per common share for full year 2013.
Crown Castle's fourth quarter and full year 2014 financial
results include the contribution from the AT&T tower
transaction, which closed on December 16, 2013. Fourth quarter
and full year 2014 AFFO and AFFO per share results include
approximately $3 million of sustaining capital expenditures
previously expected in the 2015 Outlook which were accelerated into
fourth quarter 2014.
FINANCING AND INVESTING ACTIVITIES
During the fourth quarter of 2014, Crown Castle invested
approximately $267 million in capital expenditures, comprised of
$35 million of land purchases, $40 million of sustaining capital
expenditures and $192 million of revenue generating capital
expenditures. Revenue generating capital expenditures
consisted of $91 million on existing sites and $101 million on the
construction of new sites, primarily small cell construction
activity.
During fourth quarter 2014, Crown Castle also invested
approximately $286 million in acquisitions, primarily related to
acquisitions of ground interests underneath towers.
On December 31, 2014, Crown Castle paid a quarterly common
stock dividend of $0.82 per common share, or approximately $274
million in aggregate. Diluted common shares outstanding at
December 31, 2014 were 333.6 million.
As of December 31, 2014, Crown Castle's outstanding debt
had a weighted average coupon of 4.1% per annum and a weighted
average maturity of six years. Further, Crown Castle's net
debt (total debt less cash and cash equivalents) to fourth quarter
annualized Adjusted EBITDA ratio was approximately 5.4x.
As of December 31, 2014, Crown Castle had approximately
$176 million in cash and cash equivalents (excluding restricted
cash). Subsequent to fourth quarter 2014, Crown Castle
Operating Company, a wholly owned subsidiary of Crown Castle,
increased the size of its $1.5 billion Senior Secured Revolving
Credit Facility ("Revolver") by $630 million to a total capacity of
$2.13 billion. All other existing terms of the Revolver remain
unchanged. After giving effect to the increase in the
Revolver, Crown Castle has approximately $1.4 billion of
availability under its Revolver.
"Our strong finish to 2014 allows us to increase our full year
2015 Outlook for site rental revenues, site rental gross margin,
Adjusted EBITDA, AFFO and AFFO per share," stated Jay Brown, Crown
Castle's Chief Financial Officer. "As we enter 2015, I am
excited about our ability to deliver attractive long-term total
shareholder returns given our significant common stock dividend,
the growth from the contracted escalation in our tenant leases, and
the growth opportunities that lie ahead of us as US wireless
carriers continue to invest to meet consumer demand. We
believe our strategy of investing in the US, which is the largest
wireless market in the world, will drive growth in AFFO and
dividend per share over the long-term."
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 Crown
Castle's filings with the Securities and Exchange Commission
("SEC"). The following Outlook is based on current expectations and
assumptions and assumes a US dollar to Australian dollar exchange
rate of 0.81 US dollars to 1.0 Australian dollar ("Exchange Rate")
for first quarter 2015 and full year 2015.
As reflected in the table below, Crown Castle has increased the
midpoint of its full year 2015 Outlook for site rental revenues,
site rental gross margin, Adjusted EBITDA and AFFO by approximately
$11 million, $13 million, $14 million and $8 million,
respectively. The increased midpoint of full year 2015 Outlook
for site rental revenues, site rental gross margin, Adjusted EBITDA
and AFFO reflects the results and aforementioned completed
acquisitions from fourth quarter 2014 and includes the negative
impact of approximately $9 million, $7 million, $6 million and $6
million, respectively, from a decrease in the Exchange Rate
compared to the previously provided Outlook. The completed
acquisitions during fourth quarter 2014 did not materially
contribute to full year 2014 results and are expected to contribute
$5 million to full year 2015 AFFO. The increase in full year
2015 Outlook assumes an increase of approximately $5 million in
Organic Site Rental Revenue growth as compared to the previously
provided Outlook.
Crown Castle expects 2015 new leasing activity to be similar to
2014, offset by an increased level of tenant non-renewals. The
midpoint of 2015 Outlook reflects Organic Site Rental Revenue
growth of approximately 4% compared to 2014, or approximately $125
million. The Organic Site Rental Revenue growth of
approximately $125 million in 2015 is comprised of approximately
$150 million from new leasing activity and $90 million from
escalations on existing tenant lease contracts, less approximately
$115 million from non-renewals. Of the approximately $150
million in new leasing activity, expected contributions from tower
leasing and small cells leasing are $100 million and $50 million,
respectively.
The midpoint of 2015 Outlook for site rental revenue growth is
expected to be approximately $60 million, after adjusting Organic
Site Rental Revenue growth of approximately $125 million by $65
million for straight-line accounting and exchange rates and other
items. The adjustment for straight-line accounting removes the
benefit of approximately $90 million in contractual escalators on
existing tenant leases and adds approximately $30 million in
straight-line revenues related to new leasing activity, including
tenant lease renewals. See chart below for reconciliation of
2015 Outlook for Organic Site Rental Revenue and site rental
revenues.
A chart accompanying this release is available at
http://media.globenewswire.com/cache/7657/file/31362.pdf
As previously disclosed, based on Sprint's stated intention to
decommission its iDEN network and Crown Castle's contractual terms
with Sprint, Crown Castle expects site rental revenues to be
negatively impacted by approximately $60 million to $70 million in
2015. Additionally, during 2015, Crown Castle expects site
rental revenues to be impacted by non-renewals of $35 million to
$45 million as a result of the decommissioning of the LEAP,
MetroPCS and Clearwire networks.
Over the last two years, AT&T, T-Mobile and Sprint acquired
LEAP, MetroPCS, and Clearwire ("Acquired Networks"), respectively.
Crown Castle currently expects potential non-renewals from the
decommissioning of the Acquired Networks in aggregate to be
approximately $200 million in current run-rate site rental
revenues, the majority of which Crown Castle expects to occur
between 2015 and 2018 at a rate of approximately 1% to 2% of
consolidated site rental revenues in any given year. Depending
on the eventual network deployment and decommissioning plans for
the Acquired Networks, the impact and timing of such non-renewals
may vary from Crown Castle's expectations. Additional
information regarding non-renewals from carrier consolidation is
available in Crown Castle's quarterly Supplemental Information
Package posted in the Investors section of its website.
The midpoint of full year 2015 Outlook for Adjusted EBITDA and
AFFO assumes network services gross margin contribution remains
consistent with the levels achieved in 2014; however, on a
sequential basis, the midpoint of first quarter 2015 Outlook for
Adjusted EBITDA and AFFO assumes a decrease of $5 million in
network services gross margin contribution from fourth quarter
2014.
Compared to fourth quarter 2014, the midpoint of first quarter
2015 Outlook for AFFO benefits from lower sustaining capital
expenditures. The expected sequential decrease in sustaining
capital expenditures in first quarter 2015 is attributable to
seasonality and timing, as a portion of sustaining capital
expenditures previously expected in the 2015 Outlook occurred in
fourth quarter 2014.
The following table sets forth Crown Castle's current Outlook
for first quarter 2015 and full year 2015:
(in millions, except per share
amounts) |
First Quarter 2015 |
Full Year 2015 |
Site rental revenues |
$762 to $767 |
$3,058 to $3,078 |
Site rental cost of
operations |
$236 to $241 |
$962 to $977 |
Site rental gross margin |
$523 to $528 |
$2,086 to $2,106 |
Adjusted EBITDA |
$542 to $547 |
$2,140 to $2,160 |
Interest expense and
amortization of deferred financing costs(a) |
$131 to $136 |
$528 to $543 |
FFO |
$368 to $373 |
$1,437 to $1,457 |
AFFO |
$363 to $368 |
$1,445 to $1,465 |
AFFO per share(b) |
$1.09 to $1.10 |
$4.33 to $4.39 |
Net income (loss) |
$111 to $144 |
$445 to $529 |
Net income (loss) per share -
diluted(b) |
$0.33 to $0.43 |
$1.33 to $1.59 |
Net income (loss) attributable
to CCIC common stockholders |
$99 to $136 |
$407 to $498 |
Net income (loss) attributable
to CCIC common stockholders per share - diluted(b) |
$0.30 to $0.41 |
$1.22 to $1.49 |
|
|
|
(a) See the reconciliation
of "components of interest expense and amortization of deferred
financing costs" herein for a discussion of non-cash interest
expense. |
(b) Based on 333.6 million
diluted shares outstanding as of December 31, 2014. |
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday,
January 22, 2015, at 10:30 a.m. Eastern Time. The conference
call may be accessed by dialing 888-713-3587 and asking for the
Crown Castle call (access code 6759191) at least 30 minutes prior
to the start time. The conference call may also be accessed
live over the Internet at http://investor.crowncastle.com.
Supplemental materials for the call have been posted on the Crown
Castle website at http://investor.crowncastle.com.
A telephonic replay of the conference call will be available
from 1:30 p.m. Eastern Time on Thursday, January 22, 2015, through
1:30 p.m. Eastern Time on Wednesday, April 22, 2015, and may be
accessed by dialing 888-203-1112 and using access code
6759191. An audio archive will also be available on the
company's website at http://investor.crowncastle.com shortly after
the call and will be accessible for approximately 90 days.
ABOUT CROWN CASTLE
Crown Castle provides wireless carriers with the infrastructure
they need to keep people connected and businesses running. With
approximately 40,000 towers and 14,000 small cell nodes supported
by approximately 7,000 miles of fiber, Crown Castle is the nation's
largest provider of shared wireless infrastructure with a
significant presence in the top 100 US markets. In addition,
Crown Castle operates approximately 1,800 towers in
Australia. For more information on Crown Castle, please visit
www.crowncastle.com.
Non-GAAP Financial Measures and Other
Calculations
This press release includes presentations of Adjusted EBITDA,
Funds from Operations, Adjusted Funds from Operations, Organic Site
Rental Revenues, and Site Rental Revenues, as Adjusted, 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, AFFO, Organic
Site Rental Revenues, and Site Rental Revenues, as Adjusted, 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 AFFO for periods prior to our REIT conversion.
Our measures of Adjusted EBITDA, FFO, AFFO, Organic Site Rental
Revenues and Site Rental Revenues, as Adjusted, may not be
comparable to similarly titled measures of other companies,
including other companies in the tower sector or those reported by
other REITs. Our FFO and AFFO may not be comparable to those
reported in accordance with National Association of Real Estate
Investment Trusts, including with respect to the impact of income
taxes for periods prior to our REIT conversion.
Adjusted EBITDA, FFO, AFFO, Organic Site Rental Revenues and
Site Rental Revenues, as Adjusted, 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.
During the first quarter of 2014, Crown Castle updated its
definitions of FFO and AFFO. The updated definitions of FFO and
AFFO are intended to reflect the recurring nature of Crown Castle's
site rental business and assist in comparing Crown Castle's
performance with the performance of its public tower company peers.
Under the updated calculation of AFFO, Crown Castle reflects the
benefit of prepaid rent from customers over the weighted-average
life of customer contracts rather than in the period in which the
prepaid rent was received. The updates to the definition of FFO
were primarily made to present the periods shown in a manner which
is consistent with our commencement of operations as a REIT on
January 1, 2014. These measures are not intended to replace
financial performance measures determined in accordance with GAAP.
Unless otherwise noted, FFO and AFFO as set forth in this release
and the supplemental information package are presented based on the
updated definitions. Crown Castle has provided reconciliations of
the updated definitions of FFO and AFFO to the prior definitions
below.
Adjusted EBITDA. Crown Castle defines Adjusted EBITDA as net
income (loss) plus restructuring charges (credits), asset
write-down charges, acquisition and integration costs,
depreciation, amortization and accretion, amortization of prepaid
lease purchase price adjustments, interest expense and amortization
of deferred financing costs, gains (losses) on retirement of
long-term obligations, net gain (loss) on interest rate swaps,
impairment of available-for-sale securities, interest income, other
income (expense), benefit (provision) for income taxes, cumulative
effect of change in accounting principle, income (loss) from
discontinued operations, and stock-based compensation expense.
Funds from Operations ("FFO"). Crown Castle defines Funds from
Operations as net income plus real estate related depreciation,
amortization and accretion and asset write-down charges, less
noncontrolling interest and cash paid for preferred stock
dividends, and is a measure of funds from operations attributable
to CCIC common stockholders.
FFO per share. Crown Castle defines FFO per share as FFO divided
by the diluted weighted average common shares outstanding.
FFO, as previously defined. Crown Castle defines FFO, as
previously defined, as FFO plus non-cash portion of tax provision,
less asset write-down charges and noncontrolling interest.
Adjusted Funds from Operations ("AFFO"). Crown Castle defines
Adjusted Funds from Operations as FFO before straight-line revenue,
straight-line expense, stock-based compensation expense, non-cash
portion of tax provision, non-real estate related depreciation,
amortization and accretion, amortization of non-cash interest
expense, other (income) expense, gain (loss) on retirement of
long-term obligations, net gain (loss) on interest rate swaps,
acquisition and integration costs, and adjustments for
noncontrolling interests, and less capital improvement capital
expenditures and corporate capital expenditures.
AFFO per share. Crown Castle defines AFFO per share as AFFO
divided by diluted weighted average common shares outstanding.
AFFO, as previously defined. Crown Castle defines AFFO, as
previously defined, as AFFO plus prepaid rent received less
amortization of prepaid rent.
Site Rental Revenues, as Adjusted. Crown Castle defines Site
Rental Revenues, as Adjusted, as site rental revenues, as reported,
less straight-line revenues.
Organic Site Rental Revenues. Crown Castle defines Organic Site
Rental Revenues as site rental revenues, as reported, less
straight-line revenues, the impact of tower acquisitions and
construction, foreign currency adjustments and certain non
recurring items.
Sustaining capital expenditures. Crown Castle defines sustaining
capital expenditures as either (1) corporate related capital
improvements, such as buildings, 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 and twelve months ended
December 31, 2014 and 2013 are computed as follows:
|
For the Three Months
Ended |
For the Twelve Months
Ended |
|
December 31, 2014 |
December 31, 2013 |
December 31, 2014 |
December 31, 2013 |
(in millions) |
|
|
|
|
Net income (loss) |
$ 152.6 |
$ (22.7) |
$ 398.8 |
$ 93.9 |
Adjustments to increase (decrease) net income
(loss): |
|
|
|
|
Asset write-down charges |
3.9 |
4.2 |
15.0 |
14.9 |
Acquisition and integration
costs |
6.1 |
12.8 |
35.0 |
26.0 |
Depreciation, amortization and
accretion |
253.8 |
201.7 |
1,013.1 |
774.2 |
Amortization of prepaid lease
purchase price adjustments |
5.4 |
3.9 |
20.0 |
15.5 |
Interest expense and
amortization of deferred financing costs(a) |
141.1 |
143.0 |
573.3 |
589.6 |
Gains (losses) on retirement of
long-term obligations |
— |
0.6 |
44.6 |
37.1 |
Interest income |
(0.1) |
(0.5) |
(0.6) |
(1.4) |
Other income (expense) |
(21.3) |
3.1 |
(11.9) |
3.9 |
Benefit (provision) for income
taxes |
(10.7) |
110.4 |
(10.6) |
198.6 |
Stock-based compensation
expense |
15.5 |
11.9 |
60.2 |
41.8 |
Adjusted
EBITDA(b) |
$
546.3 |
$
468.4 |
$
2,136.9 |
$
1,794.1 |
|
(a) See the
reconciliation of "components of interest expense and amortization
of deferred financing costs" herein for a discussion of non-cash
interest expense. |
(b) The above
reconciliation excludes line items included in our Adjusted EBITDA
definition which are not applicable for the periods shown.
|
Adjusted EBITDA for the quarter ending March 31, 2015
and the year ending December 31, 2015 are forecasted as
follows:
|
Q1 2015 |
Full Year 2015 |
(in millions) |
Outlook |
Outlook |
Net income (loss) |
$111 to $144 |
$445 to $529 |
Adjustments to increase (decrease) net income
(loss): |
|
|
Asset write-down charges |
$3 to $5 |
$11 to $21 |
Acquisition and integration
costs |
$0 to $3 |
$2 to $2 |
Depreciation, amortization and
accretion |
$252 to $257 |
$1,003 to $1,023 |
Amortization of prepaid lease
purchase price adjustments |
$4 to $6 |
$19 to $21 |
Interest expense and
amortization of deferred financing costs(a) |
$131 to $136 |
$528 to $543 |
Gains (losses) on retirement of
long-term obligations |
$0 to $0 |
$0 to $0 |
Interest income |
$(1) to $1 |
$(2) to $0 |
Other income (expense) |
$0 to $3 |
$6 to $8 |
Benefit (provision) for income
taxes |
$(1) to $3 |
$(1) to $7 |
Stock-based compensation
expense |
$15 to $17 |
$65 to $70 |
Adjusted
EBITDA(b) |
$542 to $547 |
$2,140 to
$2,160 |
|
(a) See the
reconciliation of "components of interest expense and amortization
of deferred financing costs" herein for a discussion of non-cash
interest expense. |
(b) The above
reconciliation excludes line items included in our Adjusted EBITDA
definition which are not applicable for the periods shown.
|
FFO and AFFO for the quarter ending March 31, 2015 and
the year ending December 31, 2015 are forecasted as follows
(based upon updated definitions):
|
Q1 2015 |
Full Year 2015 |
(in millions, except share and per share
amounts) |
Outlook |
Outlook |
Net income |
$111 to $144 |
$445 to $529 |
Real estate related depreciation,
amortization and accretion |
$248 to $251 |
$987 to $1,002 |
Asset write-down charges |
$3 to $5 |
$11 to $21 |
Adjustment for noncontrolling interest
(a) |
$(3) to $1 |
$(13) to $(6) |
Dividends on preferred stock |
$(11) to $(11) |
$(44) to $(44) |
FFO(c) |
$368 to $373 |
$1,437 to
$1,457 |
|
|
|
FFO (from above) |
$368 to $373 |
$1,437 to $1,457 |
Adjustments to increase
(decrease) FFO: |
|
|
Straight-line revenue |
$(44) to $(39) |
$(146) to $(131) |
Straight-line expense |
$23 to $28 |
$89 to $104 |
Stock-based compensation
expense |
$15 to $17 |
$65 to $70 |
Non-cash portion of tax
provision |
$(5) to $0 |
$(22) to $(7) |
Non-real estate related
depreciation, amortization and accretion |
$4 to $6 |
$16 to $21 |
Amortization of non-cash
interest expense |
$11 to $15 |
$31 to $42 |
Other (income) expense |
$0 to $3 |
$6 to $8 |
Gains (losses) on retirement of
long-term obligations |
$0 to $0 |
$0 to $0 |
Acquisition and integration
costs |
$0 to $3 |
$2 to $2 |
Adjustment for noncontrolling
interest (a) |
$3 to $(1) |
$13 to $6 |
Capital improvement capital
expenditures |
$(10) to $(8) |
$(40) to $(35) |
Corporate capital
expenditures |
$(15) to $(13) |
$(42) to $(37) |
AFFO(c) |
$363 to $368 |
$1,445 to
$1,465 |
Weighted average common shares
outstanding — diluted (b) |
333.6 |
333.6 |
AFFO per share
(c) |
$1.09 to $1.10 |
$4.33 to $4.39 |
|
(a) Inclusive of the
noncontrolling interest related to real estate related
depreciation, amortization and accretion and asset
write-downs. |
(b) Based on diluted shares
outstanding as of December 31, 2014. |
(c) See "Non-GAAP Financial
Measures and Other Calculations" herein for a discussion of the
definitions of FFO and AFFO. |
Organic Site Rental Revenue growth for the year ending
December 31, 2015 is forecasted as follows:
|
Midpoint of Full Year |
|
(in millions of dollars) |
2015 Outlook |
Full Year 2014 |
GAAP site rental revenues |
$ 3,068 |
$ 3,007 |
Site rental straight-line revenues |
(139) |
(197) |
Other - Non-recurring |
— |
(5) |
Site Rental Revenues, as Adjusted(a)(c) |
$ 2,930 |
$ 2,805 |
Cash adjustments: |
|
|
FX and other |
17 |
|
New tower acquisitions and builds(b) |
(17) |
|
Organic Site Rental Revenues(a)(c)(d) |
$ 2,930 |
|
Year-Over-Year Revenue
Growth |
|
|
GAAP site rental revenues |
2.0% |
|
Site Rental Revenues, as Adjusted |
4.5% |
|
Organic Site Rental Revenues(e)(f) |
4.5% |
|
|
(a) Includes amortization of
prepaid rent. |
(b) The financial impact of
new tower acquisitions and builds is excluded from organic site
rental revenues until the one-year anniversary of the acquisition
or build. |
(c) Includes Site Rental
Revenues, as Adjusted, from the construction of new small cell
nodes. |
(d) See "Non-GAAP Financial
Measures and Other Calculations" herein. |
(e) Year-over-year Organic
Site Rental Revenue growth for the years ending December 31,
2015: |
|
Midpoint of Full Year 2015
Outlook |
New leasing activity |
5.4% |
Escalators |
3.2% |
Organic Site Rental Revenue growth, before
non-renewals |
8.6% |
Non-renewals |
(4.1)% |
Organic Site Rental Revenue growth |
4.5% |
(f) Calculated as the
percentage change from Site Rental Revenues, as Adjusted, for the
prior period when compared to Organic Site Rental Revenues for the
current period. |
|
Organic Site Rental Revenue growth for the quarter ended
December 31, 2014 is as follows:
|
Three Months Ended
December 31, |
Twelve Months Ended
December 31, |
(in millions of dollars) |
2014 |
2013 |
2014 |
2013 |
Reported GAAP site rental revenues |
$ 761 |
$ 651 |
$ 3,007 |
$ 2,504 |
Site rental straight-line revenues |
(47) |
(49) |
(197) |
(219) |
Other - Non-recurring |
$ — |
$ (4) |
$ (5) |
$ (4) |
Site Rental Revenues, as Adjusted(a)(c) |
$ 714 |
$ 597 |
$ 2,805 |
$ 2,281 |
Cash adjustments: |
|
|
|
|
FX and other |
3 |
|
10 |
|
New tower acquisitions and builds(b) |
(81) |
|
(379) |
|
Organic Site Rental Revenues(a)(c)(d) |
$ 637 |
|
$ 2,437 |
|
Year-Over-Year Revenue
Growth |
|
|
|
|
Reported GAAP site rental revenues |
17.0% |
|
20.1% |
|
Site Rental Revenues, as Adjusted |
19.6% |
|
23.0% |
|
Organic Site Rental Revenues(e)(f) |
6.6% |
|
6.8% |
|
|
(a) Includes amortization of
prepaid rent. |
(b) The financial impact of
new tower acquisitions and builds is excluded from organic site
rental revenues until the one-year anniversary of the acquisition
or build. |
(c) Includes Site Rental
Revenues, as Adjusted from the construction of new small
cells. |
(d) See "Non-GAAP Financial
Measures and Other Calculations" herein. |
(e) Quarter-over-quarter
Organic Site Rental Revenue growth for the quarter ending
December 31, 2014: |
|
Three Months Ended December 31,
2014 |
Twelve Months Ended December 31,
2014 |
New leasing activity |
6.7% |
5.9% |
Escalators |
3.6% |
3.6% |
Organic Site Rental Revenue growth, before
non-renewals |
10.3% |
9.5% |
Non-renewals |
(3.7)% |
(2.6)% |
Organic Site Rental Revenue Growth |
6.6% |
6.8% |
(f) Calculated as the
percentage change from Site Rental Revenues, as Adjusted, for the
prior period when compared to Organic Site Rental Revenues for the
current period. |
FFO and AFFO for the three and twelve months ended
December 31, 2014 and 2013 are computed as
follows:
|
For the Three Months
Ended |
|
For the Twelve Months
Ended |
(in millions, except share and per share
amounts) |
December 31, 2014 |
|
December 31, 2013 |
|
December 31, 2014 |
|
December 31, 2013 |
|
Net income |
$ 152.6 |
|
$ (22.7) |
|
$ 398.8 |
|
$ 93.9 |
|
Real estate related depreciation,
amortization and accretion |
248.7 |
|
198.6 |
|
992.6 |
|
761.1 |
|
Asset write-down charges |
3.9 |
|
4.2 |
|
15.0 |
|
14.9 |
|
Adjustment for noncontrolling
interest(a) |
(4.5) |
|
(0.9) |
|
(8.3) |
|
(3.8) |
|
Dividends on preferred stock |
(11.0) |
|
— |
|
(44.0) |
|
— |
|
FFO(c) |
$
389.7 |
(e) |
$
179.2 |
(d) |
$
1,354.2 |
(e) |
$
866.0 |
(d) |
Weighted average common shares
outstanding — diluted |
333.6 |
|
319.6 |
|
333.3 |
|
299.3 |
|
FFO per
share(c) |
$
1.17 |
|
$
0.56 |
|
$
4.06 |
|
$
2.89 |
|
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ 389.7 |
|
$ 179.2 |
|
$ 1,354.2 |
|
$ 866.0 |
|
Adjustments to increase (decrease) FFO: |
|
|
|
|
|
|
|
|
Straight-line revenue |
(46.9) |
|
(49.0) |
|
(196.6) |
|
(218.6) |
|
Straight-line expense |
26.6 |
|
19.1 |
|
105.4 |
|
81.0 |
|
Stock-based compensation
expense |
15.5 |
|
11.9 |
|
60.2 |
|
41.8 |
|
Non-cash portion of tax
provision(b) |
(12.8) |
|
108.4 |
|
(20.4) |
|
191.7 |
|
Non-real estate related
depreciation, amortization and accretion |
5.0 |
|
3.1 |
|
20.4 |
|
13.1 |
|
Amortization of non-cash
interest expense |
19.5 |
|
21.0 |
|
80.9 |
|
99.2 |
|
Other (income) expense |
(21.3) |
|
3.1 |
|
(11.9) |
|
3.9 |
|
Gains (losses) on retirement of
long-term obligations |
— |
|
0.6 |
|
44.6 |
|
37.1 |
|
Acquisition and integration
costs |
6.1 |
|
12.8 |
|
35.0 |
|
26.0 |
|
Adjustment for noncontrolling
interest(a) |
4.5 |
|
0.9 |
|
8.3 |
|
3.8 |
|
Capital improvement capital
expenditures |
(16.0) |
|
(9.9) |
|
(32.2) |
|
(19.3) |
|
Corporate capital
expenditures |
(23.6) |
|
(10.7) |
|
(51.8) |
|
(28.4) |
|
AFFO(c) |
$
346.5 |
|
$
290.6 |
|
$
1,396.1 |
|
$
1,097.3 |
|
Weighted average common shares
outstanding — diluted |
333.6 |
|
319.6 |
|
333.3 |
|
299.3 |
|
AFFO per
share(c) |
$
1.04 |
|
$
0.91 |
|
$
4.19 |
|
$
3.67 |
|
|
|
|
|
|
|
|
|
|
AFFO (from above) |
$ 346.5 |
|
$ 290.6 |
|
$ 1,396.1 |
|
$ 1,097.3 |
|
Prepaid rent received |
117.8 |
|
87.8 |
|
350.9 |
|
241.5 |
|
Amortization of prepaid rent |
(28.0) |
|
(19.7) |
|
(97.1) |
|
(66.7) |
|
AFFO, as previously
defined(c) |
$
436.3 |
|
$
358.7 |
|
$
1,650.0 |
|
$
1,272.1 |
|
|
(a) Inclusive
of the noncontrolling interest related to real estate related
depreciation, amortization and accretion and asset
write-downs. |
(b) Adjusts
the income tax provision to reflect our estimate of cash taxes paid
had we been a REIT for all periods presented, and is
primarily comprised of foreign taxes. As a result, income tax
expense (benefit) is lower by the amount of the adjustment. |
(c) See
"Non-GAAP Financial Measures and Other Calculations" herein for a
discussion of our definitions of FFO and AFFO. |
(d) FFO, as
previously defined, for the three and twelve months ended
December 31, 2013 was previously reported as $284.3 million
and $1.047 billion, respectively, which is exclusive of the net
impact from the update of the definition of $105.1 million and
$180.7 million, respectively, which amount includes the adjustment
for non-cash portion of tax provision and excludes the adjustments
for asset write down charges and noncontrolling interests. |
(e) FFO, as
previously defined, for the three and twelve months ended
December 31, 2014 was $377.5 million and $1.327 billion
respectively, which is exclusive of the net impact from the update
of the definition of $(12.2) million and $(27.1) million,
respectively, which amount includes the adjustment for non-cash
portion of tax provision and excludes the adjustments for asset
write-down charges and noncontrolling interests. |
Other Calculations:
The components of interest expense and amortization of
deferred financing costs for the three months ended
December 31, 2014 and 2013 are as follows:
|
For the Three Months
Ended |
(in millions) |
December 31, 2014 |
December 31, 2013 |
Interest expense on debt obligations |
$ 121.5 |
$ 122.0 |
Amortization of deferred financing costs |
5.5 |
5.7 |
Amortization of adjustments on long-term
debt |
(0.9) |
(1.0) |
Amortization of interest rate swaps(a) |
15.3 |
16.2 |
Other, net |
(0.3) |
0.1 |
Interest expense and amortization of
deferred financing costs |
$
141.1 |
$
143.0 |
|
(a) Relates to the
amortization of interest rate swaps; the swaps were cash settled in
prior periods. |
The components of interest expense and amortization of
deferred financing costs for the quarter ending March 31, 2015 and
the year ending December 31, 2015 are forecasted as
follows:
|
Q1 2015 |
Full Year 2015 |
(in millions) |
Outlook |
Outlook |
Interest expense on debt obligations |
$121 to $123 |
$495 to $505 |
Amortization of deferred financing costs |
$6 to $7 |
$21 to $23 |
Amortization of adjustments on long-term
debt |
$(1) to $0 |
$(4) to $(2) |
Amortization of interest rate swaps(a) |
$6 to $8 |
$16 to $21 |
Other, net |
$0 to $0 |
$(2) to $0 |
Interest expense and amortization of
deferred financing costs |
$131 to $136 |
$528 to $543 |
|
(a) Relates to the
amortization of interest rate swaps, all of which has been cash
settled in prior periods. |
Debt balances and maturity dates as of December 31,
2014 are as follows:
(in millions) |
|
|
|
Face Value |
Final Maturity |
Revolver |
$ 695.0 |
Nov. 2018/Jan 2019 |
Term Loan A |
645.9 |
Nov. 2018/Jan 2019 |
Term Loan B |
2,835.5 |
Jan. 2019/Jan. 2021 |
4.875% Senior Notes |
850.0 |
Apr. 2022 |
5.25% Senior Notes |
1,650.0 |
Jan. 2023 |
2012 Secured Notes(a) |
1,500.0 |
Dec. 2017/Apr. 2023 |
Senior Secured Notes, Series 2009-1(b) |
160.8 |
Various |
Senior Secured Tower Revenue Notes, Series
2010-2-2010-3(c) |
1,600.0 |
Various |
Senior Secured Tower Revenue Notes, Series
2010-4-2010-6(d) |
1,550.0 |
Various |
WCP Secured Wireless Site Contracts Revenue
Notes, Series 2010-1(e) |
258.8 |
Nov. 2040 |
Capital Leases and Other Obligations |
175.2 |
Various |
Total Debt |
$
11,921.2 |
|
Less: Cash and Cash Equivalents(f) |
$ 175.6 |
|
Net Debt |
$
11,745.6 |
|
|
(a) The 2012 Secured Notes
consist of $500 million aggregate principal amount of 2.381%
secured notes due 2017 and $1.0 billion aggregate principal amount
of 3.849% secured notes due 2023. |
(b) The Senior Secured
Notes, Series 2009-1 consist of $90.8 million of principal as of
December 31, 2014 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. |
(c) The Senior Secured Tower
Revenue Notes Series 2010-2 and 2010-3 have principal amounts of
$350.0 million and $1.25 billion with anticipated repayment dates
of 2017 and 2020, respectively. |
(d) 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 $1.0 billion with
anticipated repayment dates of 2015, 2017 and 2020,
respectively. |
(e) The WCP Secured Wireless
Site Contracts Revenue Notes, Series 2010-1 ("WCP Securitized
Notes") were assumed in connection with the WCP
acquisition. If the 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. |
(f) Excludes restricted
cash. |
Net Debt to Last Quarter Annualized Adjusted EBITDA is
computed as follows:
(in millions) |
For the Three Months Ended December
31, 2014 |
Total face value of debt |
$ 11,921.2 |
Ending cash and cash equivalents |
175.6 |
Total Net Debt |
$
11,745.6 |
|
|
Adjusted EBITDA for the three months ended
December 31, 2014 |
$ 546.3 |
Last quarter annualized adjusted EBITDA |
2,185.2 |
Net Debt to Last Quarter Annualized
Adjusted EBITDA |
5.4x |
Sustaining capital expenditures for the three months
ended December 31, 2014 and 2013 is computed as
follows:
|
For the Three Months
Ended |
(in millions) |
December 31, 2014 |
December 31, 2013 |
Capital Expenditures |
$ 266.5 |
$ 182.3 |
Less: Land purchases |
35.0 |
24.0 |
Less: Wireless infrastructure
construction and improvements |
192.0 |
137.8 |
Sustaining capital
expenditures |
$
39.5 |
$
20.5 |
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 (1) potential
benefits, returns and shareholder value which may be derived from
our business and assets, our investments and our acquisitions, (2)
demand for our sites and services, (3) our growth, (4) leasing
activity, including new tenant installations and amendments and the
impact of such leasing activity on our results and Outlook, (5)
carrier network investments and upgrades, and potential benefits
derived therefrom, (6) our dividends, including our dividend plans,
the amount and growth of our dividends, and the potential benefits
therefrom, (7) small cells, including growth and margin
contribution, (8) our strategy, (9) currency exchange rates, (10)
non-renewal of leases and the timing and impact thereof, including
with respect to the Acquired Networks, (11) the iDEN network
decommissioning, including the impact and timing thereof, (12)
capital expenditures, including sustaining capital expenditures,
(13) timing items, (14) operating and general and administrative
expenses, (15) site rental revenues and Site Rental Revenues, as
Adjusted, (16) site rental cost of operations, (17) site rental
gross margin and network services gross margin, (18) Adjusted
EBITDA, (19) interest expense and amortization of deferred
financing costs, (20) FFO, including on a per share basis, (21)
AFFO, including on a per share basis, (22) Organic Site Rental
Revenues and Organic Site Rental Revenue growth, (23) net income
(loss), including on a per share basis, (24) our common shares
outstanding, including on a diluted basis, (25) the utility of
certain financial measures, including non-GAAP financial measures,
and (26) the utility of our updated definitions of FFO and AFFO.
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 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 or 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 and 4.50% Mandatory Convertible Preferred
Stock 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 or 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 our wireless infrastructure,
including the land under our sites, our business may be adversely
affected.
- Our network services business has historically experienced
significant volatility in demand, which reduces the predictability
of our results.
- The expansion and development of our business, including
through acquisitions, increased product offerings, or other
strategic growth opportunities, may cause disruptions in our
business, which may have an adverse effect on our business,
operations or financial 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 or revenues.
- 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.
- Future dividend payments to our common stockholders will reduce
the availability of our cash on hand available to fund future
discretionary investments, and may result in a need to incur
indebtedness or issue equity securities to fund growth
opportunities. In such event, the then current economic, credit
market or equity market conditions will impact the availability or
cost of such financing, which may hinder our ability to grow our
per share results of operations.
- Remaining qualified to be taxed as a REIT involves highly
technical and complex provisions of the US Internal Revenue Code.
Failure to remain qualified as a REIT would result in our inability
to deduct dividends to stockholders when computing our taxable
income, which would reduce our available cash.
- Complying with REIT requirements, including the 90%
distribution requirement, may limit our flexibility or cause us to
forgo otherwise attractive opportunities, including certain
discretionary investments and potential financing
alternatives.
- If we fail to pay scheduled dividends on the 4.50% Mandatory
Convertible Preferred Stock, in cash, common stock or any
combination of cash and common stock, we will be prohibited from
paying dividends on our Common Stock, which may jeopardize our
status as a REIT.
- We have limited experience operating as a REIT. Our failure to
successfully operate as a REIT may adversely affect our financial
condition, cash flow, the per share trading price of our common
stock, or our ability to satisfy debt service obligations.
- REIT ownership limitations and transfer restrictions may
prevent or restrict certain transfers of our capital stock.
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 SEC.
|
CROWN CASTLE
INTERNATIONAL CORP. |
CONDENSED CONSOLIDATED
BALANCE SHEET (UNAUDITED) |
(in thousands, except share
amounts) |
|
|
|
|
December 31,
2014 |
December 31,
2013 |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 175,620 |
$ 223,394 |
Restricted cash |
147,411 |
183,526 |
Receivables, net |
350,829 |
249,925 |
Prepaid expenses |
155,070 |
132,003 |
Deferred income tax assets |
29,961 |
26,714 |
Other current assets |
94,211 |
77,121 |
Total current assets |
953,102 |
892,683 |
Deferred site rental receivables |
1,260,614 |
1,078,995 |
Property and equipment, net |
9,148,311 |
8,947,677 |
Goodwill |
5,188,491 |
4,916,426 |
Other intangible assets, net |
3,715,700 |
4,057,865 |
Deferred income tax assets |
20,914 |
19,008 |
Long-term prepaid rent, deferred financing
costs and other assets, net |
856,144 |
682,254 |
Total assets |
$ 21,143,276 |
$ 20,594,908 |
|
|
|
LIABILITIES AND
EQUITY |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 167,662 |
$ 145,390 |
Accrued interest |
66,943 |
65,582 |
Deferred revenues |
348,338 |
260,114 |
Other accrued liabilities |
202,657 |
181,715 |
Current maturities of debt and
other obligations |
113,335 |
103,586 |
Total current liabilities |
898,935 |
756,387 |
Debt and other long-term obligations |
11,807,526 |
11,490,914 |
Deferred income tax liabilities |
39,889 |
56,513 |
Other long-term liabilities |
1,659,698 |
1,349,919 |
Total liabilities |
14,406,048 |
13,653,733 |
Commitments and contingencies |
|
|
CCIC stockholders' equity: |
|
|
Common stock, $.01 par value;
600,000,000 shares authorized; shares issued and outstanding:
December 31, 2014—333,856,632 and December 31,
2013—334,070,016 |
3,339 |
3,341 |
4.50% Mandatory Convertible
Preferred Stock, Series A, $.01 par value; 20,000,000 shares
authorized; shares issued and outstanding: December 31, 2014
and 2013—9,775,000; aggregate liquidation value: December 31,
2014 and 2013—$977,500 |
98 |
98 |
Additional paid-in capital |
9,512,396 |
9,482,769 |
Accumulated other comprehensive
income (loss) |
15,820 |
(23,612) |
Dividends/distributions in
excess of earnings |
(2,815,428) |
(2,535,879) |
Total CCIC stockholders'
equity |
6,716,225 |
6,926,717 |
Noncontrolling interest |
21,003 |
14,458 |
Total equity |
6,737,228 |
6,941,175 |
Total liabilities and
equity |
$ 21,143,276 |
$ 20,594,908 |
|
|
CROWN CASTLE
INTERNATIONAL CORP. |
CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS (UNAUDITED) |
(in thousands, except share and
per share amounts) |
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2014 |
2013 |
2014 |
2013 |
Net revenues: |
|
|
|
|
Site rental |
$ 761,380 |
$ 650,590 |
$ 3,006,774 |
$ 2,503,620 |
Network services and other |
206,184 |
147,831 |
683,110 |
518,764 |
Net revenues |
967,564 |
798,421 |
3,689,884 |
3,022,384 |
Operating expenses: |
|
|
|
|
Costs of operations (exclusive
of depreciation, amortization and accretion): |
|
|
|
|
Site rental |
238,489 |
186,522 |
944,666 |
725,109 |
Network services and other |
126,456 |
92,113 |
405,800 |
321,687 |
General and administrative |
77,299 |
67,163 |
282,696 |
238,702 |
Asset write-down charges |
3,896 |
4,158 |
15,040 |
14,863 |
Acquisition and integration
costs |
6,118 |
12,820 |
35,042 |
26,005 |
Depreciation, amortization and
accretion |
253,776 |
201,697 |
1,013,064 |
774,215 |
Total operating expenses |
706,034 |
564,473 |
2,696,308 |
2,100,581 |
Operating income (loss) |
261,530 |
233,948 |
993,576 |
921,803 |
Interest expense and amortization of deferred
financing costs |
(141,070) |
(142,989) |
(573,291) |
(589,630) |
Gains (losses) on retirement of long-term
obligations |
— |
(640) |
(44,629) |
(37,127) |
Interest income |
62 |
494 |
616 |
1,355 |
Other income (expense) |
21,339 |
(3,117) |
11,862 |
(3,872) |
Income (loss) before income taxes |
141,861 |
87,696 |
388,134 |
292,529 |
Benefit (provision) for income taxes |
10,726 |
(110,374) |
10,640 |
(198,628) |
Net income (loss) |
152,587 |
(22,678) |
398,774 |
93,901 |
Less: Net income (loss) attributable to the
noncontrolling interest |
4,517 |
866 |
8,261 |
3,790 |
Net income (loss) attributable to CCIC
stockholders |
148,070 |
(23,544) |
390,513 |
90,111 |
Dividends on preferred stock |
(10,997) |
(11,363) |
(43,988) |
(11,363) |
Net income (loss) attributable to CCIC common
stockholders |
$ 137,073 |
$ (34,907) |
$ 346,525 |
$ 78,748 |
|
|
|
|
|
Net income (loss) attributable to CCIC common
stockholders, per common share: |
|
|
|
|
Basic |
$ 0.41 |
$ (0.11) |
$ 1.04 |
$ 0.26 |
Diluted |
$ 0.41 |
$ (0.11) |
$ 1.04 |
$ 0.26 |
|
|
|
|
|
Weighted-average common shares outstanding
(in thousands): |
|
|
|
|
Basic |
332,416 |
319,634 |
332,302 |
298,083 |
Diluted |
333,554 |
319,634 |
333,265 |
299,293 |
|
|
CROWN CASTLE
INTERNATIONAL CORP. |
CONDENSED CONSOLIDATED
STATEMENT OF CASH FLOWS (UNAUDITED) |
(in thousands) |
|
|
Twelve Months
Ended December 31, |
|
2014 |
2013 |
Cash flows from operating
activities: |
|
|
Net income (loss) |
$ 398,774 |
$ 93,901 |
Adjustments to reconcile net income (loss) to
net cash provided by (used for) operating activities: |
|
|
Depreciation, amortization and
accretion |
1,013,064 |
774,215 |
Gains (losses) on retirement of
long-term obligations |
44,629 |
37,127 |
Amortization of deferred
financing costs and other non-cash interest |
80,854 |
99,245 |
Stock-based compensation
expense |
51,497 |
39,030 |
Asset write-down charges |
15,040 |
14,863 |
Deferred income tax benefit
(provision) |
(25,579) |
180,275 |
Other non-cash adjustments,
net |
(25,798) |
2,974 |
Changes in assets and
liabilities, excluding the effects of acquisitions: |
|
|
Increase (decrease) in
liabilities |
412,952 |
284,120 |
Decrease (increase) in
assets |
(299,303) |
(288,094) |
Net cash provided by (used for)
operating activities |
1,666,130 |
1,237,656 |
Cash flows from investing
activities: |
|
|
Payments for acquisition of
businesses, net of cash acquired |
(466,305) |
(4,960,435) |
Capital expenditures |
(780,077) |
(567,810) |
Other investing activities,
net |
3,477 |
7,276 |
Net cash provided by (used for)
investing activities |
(1,242,905) |
(5,520,969) |
Cash flows from financing
activities: |
|
|
Proceeds from issuance of
long-term debt |
845,750 |
1,618,430 |
Net proceeds from issuance of
capital stock |
— |
2,980,586 |
Net proceeds from issuance of
preferred stock |
— |
950,886 |
Principal payments on debt and
other long-term obligations |
(116,426) |
(101,322) |
Purchases and redemptions of
long-term debt |
(836,899) |
(762,970) |
Purchases of capital stock |
(21,872) |
(99,458) |
Borrowings under revolving
credit facility |
1,019,000 |
976,032 |
Payments under revolving credit
facility |
(698,000) |
(1,855,032) |
Payments for financing
costs |
(15,899) |
(30,001) |
Net decrease (increase) in
restricted cash |
30,010 |
385,982 |
Dividends/distributions paid on
common stock |
(624,297) |
— |
Dividends paid on preferred
stock |
(44,354) |
— |
Net cash provided by (used for)
financing activities |
(462,987) |
4,063,133 |
Effect of exchange rate changes on
cash |
(8,012) |
2,210 |
Net increase (decrease) in cash and
cash equivalents |
(47,774) |
(217,970) |
Cash and cash equivalents at
beginning of period |
223,394 |
441,364 |
Cash and cash equivalents at end of
period |
$ 175,620 |
$ 223,394 |
Supplemental disclosure of cash flow
information: |
|
|
Interest paid |
491,076 |
477,395 |
Income taxes paid |
18,770 |
15,591 |
Contacts: Jay Brown, CFO Son Nguyen, VP - Corporate Finance
Crown Castle International Corp. 713-570-3050
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