HIGHLIGHTS
Crown Castle International Corp. (NYSE:CCI) ("Crown Castle") today
reported results for the quarter ended March 31, 2016.
"As a shared wireless infrastructure provider,
Crown Castle is uniquely positioned with our portfolio of towers
and small cells to help our customers deploy their wireless
networks efficiently and cost-effectively as they seek to meet the
increasing demand for wireless connectivity," stated Ben Moreland,
Crown Castle's President and Chief Executive Officer. "Our
track record of consistently delivering results that meet or exceed
our guidance, including the strong results we generated in the
first quarter, further demonstrates the long-term demand for our
wireless infrastructure. The innovation and adoption of
wireless connectivity is expected to drive new applications, such
as machine-to-machine connections, mobile video and fixed wireless
broadband, all of which give us confidence in our ability to
deliver on our stated goal of generating compound annual growth in
AFFO and dividends per share of 6% to 7% organically over the next
several years. We believe this growth, combined with our
current dividend yield of approximately 4%, represents an
attractive long-term total return profile for shareholders."
RESULTS FOR THE QUARTER
The table below sets forth select financial
results for the three month period ended March 31, 2016.
For further information, refer to the financial statements and
non-GAAP and other calculation reconciliations included in this
press release.
($ in millions,except per share amounts) |
Actual |
Midpoint Q1 2016 Outlook(b) |
Actual Compared to Outlook |
Q1 2016 |
Q1 2015 |
$ Change |
% Change |
Site rental revenues |
$ |
799 |
|
$ |
731 |
|
+$ |
68 |
|
|
9 |
% |
$ |
791 |
|
+$ |
8 |
|
Site rental gross margin |
$ |
547 |
|
$ |
499 |
|
+$ |
48 |
|
|
10 |
% |
$ |
543 |
|
+$ |
4 |
|
Adjusted EBITDA(a) |
$ |
539 |
|
$ |
529 |
|
+$ |
10 |
|
|
2 |
% |
$ |
536 |
|
+$ |
3 |
|
AFFO(a) |
$ |
395 |
|
$ |
366 |
|
+$ |
29 |
|
|
8 |
% |
$ |
381 |
|
+$ |
14 |
|
AFFO per Share(a) |
$ |
1.18 |
|
$ |
1.10 |
|
+$ |
0.08 |
|
|
7 |
% |
$ |
1.14 |
|
+$ |
0.04 |
|
Net income (loss) |
$ |
48 |
|
$ |
125 |
|
-$ |
77 |
|
|
-62 |
% |
$ |
75 |
|
-$ |
27 |
|
Net income (loss) per share - diluted(c) |
$ |
0.11 |
|
$ |
0.30 |
|
-$ |
0.19 |
|
|
-63 |
% |
$ |
0.19 |
|
-$ |
0.08 |
|
|
(a) See reconciliation of this
non-GAAP financial measure to net income (loss) included
herein. |
(b) As issued on January 27,
2016. |
(c) Calculated using net income
(loss) attributable to CCIC common stockholders on a continuing
operations basis. |
|
- Site rental revenues. Organic Site
Rental Revenue growth was approximately 8% year-over-year,
comprised of approximately 7% growth from new leasing activity and
3% from contracted tenant escalations, net of approximately 2% from
tenant non-renewals. Site rental revenues growth of $68
million from first quarter 2015 to first quarter 2016 is comprised
of $55 million in Organic Site Rental Revenue growth, less $14
million in adjustments for straight-line accounting, plus $27
million in contributions from acquisitions and other items.
- Non-recurring and timing items. Results
included one-time items not expected in the previously provided
Outlook which benefited site rental revenues by approximately $4
million and increased site rental cost of operations by $3 million
during first quarter 2016. Further, AFFO for first quarter
2016 benefited from $10 million in lower than expected sustaining
capital expenditures, which is primarily due to timing as full year
2016 Outlook for sustaining capital expenditures remains
unchanged. Excluding the benefit of these items, Crown Castle
still exceeded the midpoint of its previously provided first
quarter 2016 Outlook for site rental revenues, site rental gross
margin, Adjusted EBITDA, AFFO and AFFO per share.
- Segment reporting. During first quarter
2016, Crown Castle changed its reportable operating segments to be
comprised of a Towers operating segment ("Towers") and a Small
Cells operating segment ("Small Cells"). Further information
regarding the Towers and Small Cells segments are available in this
press release and in Crown Castle's quarterly Supplemental
Information Package posted in the Investors section of its
website.
INVESTING AND FINANCING ACTIVITIES
DURING THE QUARTER
During first quarter 2016, Crown Castle invested
approximately $193 million in capital expenditures, comprised of
$21 million of land purchases, $10 million of sustaining capital
expenditures and $162 million of revenue generating capital
expenditures. Revenue generating capital expenditures
consisted of $83 million invested in Towers and $79 million
invested in Small Cells.
On March 31, 2016, Crown Castle paid a
quarterly common stock dividend of $0.885 per common share, or
approximately $298 million in the aggregate, consistent with the
dividend paid in fourth quarter 2015.
During the quarter, Crown Castle issued $1.5
billion in aggregate principal amount of senior unsecured notes,
the proceeds of which were used to repay borrowings under Crown
Castle’s credit facilities. The notes are due 2021 and 2026
and have an interest rate of 3.4% per annum and 4.45% per annum,
respectively. As of March 31, 2016, Crown Castle had
approximately $176 million in cash and cash equivalents (excluding
restricted cash) and approximately $2.3 billion of availability
under its revolving credit facility.
Subsequent to first quarter 2016, on April
8, 2016, Crown Castle acquired Tower Development Corporation
("TDC") for approximately $461 million in cash. TDC owns and
operates 336 towers in the U.S. and Puerto Rico. Based on
TDC's run-rate contribution, the transaction is immediately
accretive to AFFO per share. Crown Castle funded the
acquisition with available cash, including cash on hand, cash from
borrowings under its revolving credit facility and cash from the
sale of approximately 3.5 million net shares of common stock during
first quarter 2016.
"The first quarter continues our track record of
execution, as demonstrated by our results during the quarter and
increased Outlook for the full year," stated Jay Brown, Crown
Castle’s Chief Financial Officer. "At the same time, we also
continued our strategy of deploying capital in a manner that we
believe will enhance long-term growth in dividends per share by
investing in small cells and acquiring TDC, which further reinforce
our leadership position in U.S. wireless
infrastructure. Our approach to creating long-term
shareholder value through delivering a high-quality, growing
dividend stream ultimately drives our decision to invest in the
U.S., which we believe is the most attractive market for wireless
investment. Finally, we were able to generate these results
while continuing to invest in the future of our business and
maintaining a strong balance sheet."
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 table sets forth Crown Castle's
current Outlook for second quarter 2016 and full year 2016:
(in millions, except per share amounts) |
Second Quarter 2016 |
Full Year 2016 |
Site
rental revenues |
$ |
801 |
|
to |
$ |
806 |
|
$ |
3,207 |
|
to |
$ |
3,232 |
|
Site
rental cost of operations |
$ |
251 |
|
to |
$ |
256 |
|
$ |
1,006 |
|
to |
$ |
1,031 |
|
Site
rental gross margin |
$ |
547 |
|
to |
$ |
552 |
|
$ |
2,191 |
|
to |
$ |
2,216 |
|
Adjusted EBITDA(a) |
$ |
543 |
|
to |
$ |
548 |
|
$ |
2,193 |
|
to |
$ |
2,218 |
|
Interest expense and
amortization of deferred financing costs(b) |
$ |
128 |
|
to |
$ |
133 |
|
$ |
513 |
|
to |
$ |
533 |
|
FFO(a) |
$ |
363 |
|
to |
$ |
368 |
|
$ |
1,428 |
|
to |
$ |
1,453 |
|
AFFO(a) |
$ |
389 |
|
to |
$ |
394 |
|
$ |
1,585 |
|
to |
$ |
1,610 |
|
AFFO
per share(a)(c) |
$ |
1.15 |
|
to |
$ |
1.16 |
|
$ |
4.66 |
|
to |
$ |
4.73 |
|
Net
income (loss) |
$ |
82 |
|
to |
$ |
115 |
|
$ |
325 |
|
to |
$ |
424 |
|
Net
income (loss) per share - diluted(c)(d) |
$ |
0.21 |
|
to |
$ |
0.31 |
|
$ |
0.83 |
|
to |
$ |
1.12 |
|
|
(a) See reconciliation of this non-GAAP financial
measure to net income (loss) included herein. |
(b) See the reconciliation of "components of
interest expense and amortization of deferred financing costs"
herein for a discussion of non-cash interest expense. |
(c) Based on diluted shares outstanding as of
March 31, 2016 of approximately 338 million shares for second
quarter 2016. Full year 2016 assumes diluted shares outstanding of
approximately 340 million shares, inclusive of the assumed
conversion of the mandatory convertible preferred stock in November
2016. |
(d) Calculated using net income (loss)
attributable to CCIC common stockholders. |
|
Full Year 2016 Outlook
The table below compares the results for full
year 2015, the midpoint of the current full year 2016 Outlook and
the midpoint of the previously provided full year 2016 Outlook for
select metrics:
|
FY 2015 to Midpoint of FY 2016 Outlook Comparison |
Previous Full Year 2016 Outlook(b) |
Current Compared to Previous Outlook |
($ in
millions, except per share amounts) |
Full Year 2015 Actual |
Current Full Year2016 Outlook |
$ Change |
% Change |
Site rental revenues |
$ |
3,018 |
|
$ |
3,220 |
|
+$ |
202 |
|
|
+7 |
% |
$ |
3,175 |
|
+$ |
45 |
|
Site rental gross margin |
$ |
2,055 |
|
$ |
2,204 |
|
+$ |
149 |
|
|
+7 |
% |
$ |
2,173 |
|
+$ |
31 |
|
Adjusted EBITDA(a) |
$ |
2,119 |
|
$ |
2,206 |
|
+$ |
87 |
|
|
+4 |
% |
$ |
2,181 |
|
+$ |
25 |
|
AFFO(a) |
$ |
1,437 |
|
$ |
1,598 |
|
+$ |
161 |
|
|
+11 |
% |
$ |
1,574 |
|
+$ |
24 |
|
AFFO per Share(a) |
$ |
4.30 |
|
$ |
4.70 |
|
+$ |
0.40 |
|
|
+9 |
% |
$ |
4.68 |
|
+$ |
0.02 |
|
|
(a) See reconciliation of this
non-GAAP financial measure to net income (loss) included
herein. |
(b) As issued on January 27,
2016. |
|
- The increase in full year 2016 Outlook reflects the
contribution from the TDC acquisition, the results from the first
quarter and the expected timing benefit from tenant non-renewals
occurring later than previously expected.
- The chart below reconciles the components of expected growth,
at the midpoint, in Organic Site Rental Revenues and site rental
revenues from 2015 to 2016 of approximately $180 million and $202
million, respectively. The TDC acquisition, which closed on
April 8, 2016, is expected to generate approximately $24 million in
site rental revenues and $20 million in site rental gross margin
during full year 2016. For second quarter 2016, the TDC
acquisition is expected to generate approximately $8 million in
site rental revenues and $6 million in site rental gross margin.An
infographic accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/8e49309d-8ef9-49e6-bbcb-cc1c38e7857e
- The chart below reconciles the components of expected growth in
AFFO from 2015 to 2016 of approximately $161 million at the
midpoint.An infographic accompanying this announcement is
available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/5abd7609-8ca6-4568-9aa4-0b65092589c5
- Additional information regarding Crown Castle's expectations
for site rental revenue growth, including tenant non-renewals, is
available in Crown Castle's quarterly Supplemental Information
Package posted in the Investors section of its website.
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for
Friday, April 22, 2016, at 10:30 a.m. Eastern Time. The
conference call may be accessed by dialing 800-262-8795 and asking
for the Crown Castle call (access code 463030) 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 Friday, April 22, 2016,
through 1:30 p.m. Eastern Time on Thursday, July 21, 2016 and may
be accessed at https://jsp.premiereglobal.com/webrsvp and
using access code 463030. 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 16,500 miles of fiber
supporting small cells, Crown Castle is the nation's largest
provider of shared wireless infrastructure with a significant
presence in the top 100 US markets. 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, Segment Gross Margin, Segment Operating Profit,
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,
Segment Gross Margin, Segment Operating Profit, 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, Segment Gross
Margin, Segment Operating Profit, 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, Segment Gross Margin, Segment
Operating Profit, 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.
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,
gains (losses) on foreign currency swaps, impairment of
available-for-sale securities, interest income, other income
(expense), benefit (provision) for income taxes, cumulative effect
of a change in accounting principle, income (loss) from
discontinued operations and stock-based compensation expense.
Segment Gross Margin. Crown Castle defines segment gross
margin as segment revenue less segment operating expenses,
excluding stock-based compensation expense and prepaid lease
purchase price adjustments recorded in cost of operations.
Segment Operating Profit. Crown Castle defines segment
operating profit as Segment Gross Margin less general and
administrative expenses attributable to the respective segment.
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.
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,
gains (losses) on foreign currency 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.
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 and Other
Calculations:
Adjusted EBITDA for the three months
ended March 31, 2016 and 2015 is computed as
follows:
|
For the Three Months Ended |
|
March 31, 2016 |
|
March 31, 2015 |
(in millions) |
|
|
|
Net income (loss) |
$ |
47.8 |
|
|
$ |
125.1 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
Income (loss) from discontinued
operations |
— |
|
|
(13.4 |
) |
Asset write-down charges |
8.0 |
|
|
8.6 |
|
Acquisition and integration
costs |
5.6 |
|
|
2.0 |
|
Depreciation, amortization and
accretion |
277.9 |
|
|
251.8 |
|
Amortization of prepaid lease
purchase price adjustments |
5.2 |
|
|
5.2 |
|
Interest expense and amortization
of deferred financing costs(a) |
126.4 |
|
|
134.4 |
|
Gains (losses) on retirement of
long-term obligations |
30.6 |
|
|
— |
|
Interest income |
(0.2 |
) |
|
(0.1 |
) |
Other income (expense) |
3.3 |
|
|
0.2 |
|
Benefit (provision) for income
taxes |
3.9 |
|
|
(1.4 |
) |
Stock-based compensation
expense |
30.7 |
|
|
16.8 |
|
Adjusted
EBITDA(b) |
$ |
539.1 |
|
|
$ |
529.3 |
|
|
(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 definition
which are not applicable for the periods shown. |
|
Adjusted EBITDA for the quarter ending
June 30, 2016 and the year ending December 31, 2016 are
forecasted as follows:
|
Q2 2016 |
|
Full Year 2016 |
(in
millions) |
Outlook |
|
Outlook |
Net income (loss) |
$ |
82 |
|
to |
$ |
115 |
|
|
$ |
325 |
|
to |
$ |
424 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset write-down charges |
$ |
9 |
|
to |
$ |
11 |
|
|
$ |
33 |
|
to |
$ |
43 |
|
Acquisition and integration
costs |
$ |
3 |
|
to |
$ |
6 |
|
|
$ |
15 |
|
to |
$ |
20 |
|
Depreciation, amortization and
accretion |
$ |
270 |
|
to |
$ |
275 |
|
|
$ |
1,084 |
|
to |
$ |
1,104 |
|
Amortization of prepaid lease
purchase price adjustments |
$ |
4 |
|
to |
$ |
6 |
|
|
$ |
20 |
|
to |
$ |
22 |
|
Interest expense and amortization
of deferred financing costs(a) |
$ |
128 |
|
to |
$ |
133 |
|
|
$ |
513 |
|
to |
$ |
533 |
|
Gains (losses) on retirement of
long-term obligations |
$ |
0 |
|
to |
$ |
0 |
|
|
$ |
31 |
|
to |
$ |
31 |
|
Interest income |
$ |
(2 |
) |
to |
$ |
0 |
|
|
$ |
(3 |
) |
to |
$ |
(1 |
) |
Other income (expense) |
$ |
(5 |
) |
to |
$ |
(2 |
) |
|
$ |
(8 |
) |
to |
$ |
(6 |
) |
Benefit (provision) for income
taxes |
$ |
5 |
|
to |
$ |
9 |
|
|
$ |
16 |
|
to |
$ |
24 |
|
Stock-based compensation
expense |
$ |
21 |
|
to |
$ |
23 |
|
|
$ |
93 |
|
to |
$ |
98 |
|
Adjusted
EBITDA(b) |
$ |
543 |
|
to |
$ |
548 |
|
|
$ |
2,193 |
|
to |
$ |
2,218 |
|
|
(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 definition which
are not applicable for the periods shown. |
|
FFO and AFFO for the quarter ending
June 30, 2016 and the year ending December 31, 2016 are
forecasted as follows:
|
Q2 2016 |
|
Full Year 2016 |
(in millions, except
share and per share amounts) |
Outlook |
|
Outlook |
Net income |
$ |
82 |
|
to |
$ |
115 |
|
|
$ |
325 |
|
to |
$ |
424 |
|
Real estate related
depreciation, amortization and accretion |
$ |
265 |
|
to |
$ |
268 |
|
|
$ |
1,060 |
|
to |
$ |
1,075 |
|
Asset write-down
charges |
$ |
9 |
|
to |
$ |
11 |
|
|
$ |
33 |
|
to |
$ |
43 |
|
Dividends on preferred
stock |
$ |
(11 |
) |
to |
$ |
(11 |
) |
|
$ |
(44 |
) |
to |
$ |
(44 |
) |
FFO(b)(c)(e) |
$ |
363 |
|
to |
$ |
368 |
|
|
$ |
1,428 |
|
to |
$ |
1,453 |
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
363 |
|
to |
$ |
368 |
|
|
$ |
1,428 |
|
to |
$ |
1,453 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
Straight-line revenue |
$ |
(20 |
) |
to |
$ |
(15 |
) |
|
$ |
(54 |
) |
to |
$ |
(39 |
) |
Straight-line expense |
$ |
21 |
|
to |
$ |
26 |
|
|
$ |
84 |
|
to |
$ |
99 |
|
Stock-based compensation
expense |
$ |
21 |
|
to |
$ |
23 |
|
|
$ |
93 |
|
to |
$ |
98 |
|
Non-cash portion of tax
provision |
$ |
0 |
|
to |
$ |
5 |
|
|
$ |
4 |
|
to |
$ |
19 |
|
Non-real estate related
depreciation, amortization and accretion |
$ |
5 |
|
to |
$ |
7 |
|
|
$ |
24 |
|
to |
$ |
29 |
|
Amortization of non-cash interest
expense |
$ |
3 |
|
to |
$ |
6 |
|
|
$ |
14 |
|
to |
$ |
20 |
|
Other (income) expense |
$ |
(5 |
) |
to |
$ |
(2 |
) |
|
$ |
(8 |
) |
to |
$ |
(6 |
) |
Gains (losses) on retirement of
long-term obligations |
$ |
0 |
|
to |
$ |
0 |
|
|
$ |
31 |
|
to |
$ |
31 |
|
Acquisition and integration
costs |
$ |
3 |
|
to |
$ |
6 |
|
|
$ |
15 |
|
to |
$ |
20 |
|
Capital improvement capital
expenditures |
$ |
(7 |
) |
to |
$ |
(5 |
) |
|
$ |
(46 |
) |
to |
$ |
(41 |
) |
Corporate capital expenditures |
$ |
(11 |
) |
to |
$ |
(9 |
) |
|
$ |
(34 |
) |
to |
$ |
(29 |
) |
AFFO(b)(c)(e) |
$ |
389 |
|
to |
$ |
394 |
|
|
$ |
1,585 |
|
to |
$ |
1,610 |
|
Weighted average common shares
outstanding — diluted(a)(d) |
|
338.3 |
|
|
|
340.3 |
|
AFFO per
share(b)(e) |
$ |
1.15 |
|
to |
$ |
1.16 |
|
|
$ |
4.66 |
|
to |
$ |
4.73 |
|
|
(a) Based on diluted shares
outstanding as of March 31, 2016 of approximately 338 million
shares for second quarter 2016. Full year 2016 assumes diluted
shares outstanding of approximately 340 million shares, inclusive
of the assumed conversion of the mandatory convertible preferred
stock in November 2016. |
(b) See "Non-GAAP Financial Measures
and Other Calculations" herein for a discussion for our definitions
of FFO and AFFO. |
(c) FFO and AFFO are reduced by cash
paid for preferred stock dividends. |
(d) The diluted weighted average
common shares outstanding assumes no conversion of preferred stock
in the share count other than as discussed in footnote (a). |
(e) The above reconciliation
excludes line items included in our definition which are not
applicable for the periods shown. |
|
Organic Site Rental Revenue growth for
the year ending December 31, 2016 is forecasted as
follows:
|
Midpoint of Full Year |
|
|
(in millions of
dollars) |
2016 Outlook |
|
Full Year 2015 |
GAAP site rental
revenues |
$ |
3,220 |
|
|
$ |
3,018 |
|
Site rental
straight-line revenues |
(47 |
) |
|
(111 |
) |
Other |
— |
|
|
— |
|
Site Rental Revenues,
as Adjusted(a)(c) |
$ |
3,173 |
|
|
$ |
2,907 |
|
Acquisitions and
builds(b) |
(86 |
) |
|
|
Organic Site Rental
Revenues(a)(c)(d) |
$ |
3,087 |
|
|
|
Year-Over-Year
Revenue Growth |
|
|
|
GAAP site rental
revenues |
6.7 |
% |
|
|
Site Rental Revenues,
as Adjusted |
9.1 |
% |
|
|
Organic Site Rental
Revenues(e)(f) |
6.2 |
% |
|
|
|
(a)
Includes amortization of prepaid rent. |
(b) The
financial impact of acquisitions, as measured by run-rate
contribution, and tower 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 year
ending December 31, 2016: |
|
|
|
Midpoint of Full Year |
|
2016 Outlook |
New leasing activity |
6.0 |
% |
Escalators |
3.0 |
% |
Organic Site Rental Revenue growth,
before non-renewals |
9.1 |
% |
Non-renewals |
(2.9 |
)% |
Organic Site Rental Revenue
growth |
6.2 |
% |
|
(f) Calculated as the percentage
change from Site Rental Revenues, as Adjusted, for the prior period
when compared to Organic Site Rental Revenue for the current
period. |
|
Organic Site Rental Revenue growth for the quarter ended
March 31, 2016 is as follows:
|
Three Months Ended March 31, |
(in millions of
dollars) |
|
2016 |
|
|
|
2015 |
|
Reported GAAP site
rental revenues |
$ |
799 |
|
|
$ |
731 |
|
Site rental
straight-line revenues |
(17 |
) |
|
(31 |
) |
Other |
— |
|
|
— |
|
Site Rental Revenues,
as Adjusted(a)(c) |
$ |
782 |
|
|
$ |
700 |
|
Acquisitions and
builds(b) |
(27 |
) |
|
|
Organic Site Rental
Revenues(a)(c)(d) |
$ |
755 |
|
|
|
Year-Over-Year
Revenue Growth |
|
|
|
Reported GAAP site
rental revenues |
9.3 |
% |
|
|
Site Rental Revenues,
as Adjusted |
11.6 |
% |
|
|
Organic Site Rental
Revenues(e)(f) |
7.8 |
% |
|
|
|
(a)
Includes amortization of prepaid rent. |
(b) The
financial impact of acquisitions, as measured by run-rate
contribution, and tower 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)
Quarter-over-quarter Organic Site Rental Revenue growth for the
quarter ending March 31, 2016: |
|
Three Months Ended |
|
March 31, 2016 |
New leasing activity |
6.8 |
% |
Escalators |
3.3 |
% |
Organic Site Rental Revenue growth,
before non-renewals |
10.0 |
% |
Non-renewals |
(2.3 |
)% |
Organic Site Rental Revenue
Growth |
7.8 |
% |
|
(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 ended March 31, 2016 and
2015 are computed as follows:
|
For the Three Months Ended |
|
March 31, |
|
March 31, |
(in millions, except
share and per share amounts) |
2016 |
|
2015 |
Net income(a) |
$ |
47.8 |
|
|
$ |
111.7 |
|
Real estate related
depreciation, amortization and accretion |
271.5 |
|
|
247.6 |
|
Asset write-down
charges |
8.0 |
|
|
8.6 |
|
Dividends on preferred
stock |
(11.0 |
) |
|
(11.0 |
) |
FFO(b)(c)(e) |
$ |
316.3 |
|
|
$ |
356.9 |
|
Weighted average common shares
outstanding — diluted(d) |
334.9 |
|
|
333.5 |
|
FFO per
share(b)(e) |
$ |
0.94 |
|
|
$ |
1.07 |
|
|
|
|
|
FFO (from above) |
$ |
316.3 |
|
|
$ |
356.9 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
Straight-line revenue |
(17.3 |
) |
|
(30.5 |
) |
Straight-line expense |
23.8 |
|
|
24.6 |
|
Stock-based compensation
expense |
30.7 |
|
|
16.8 |
|
Non-cash portion of tax
provision |
1.8 |
|
|
(3.6 |
) |
Non-real estate related
depreciation, amortization and accretion |
6.4 |
|
|
4.2 |
|
Amortization of non-cash interest
expense |
4.2 |
|
|
11.7 |
|
Other (income) expense |
3.3 |
|
|
0.2 |
|
Gains (losses) on retirement of
long-term obligations |
30.6 |
|
|
— |
|
Acquisition and integration
costs |
5.6 |
|
|
2.0 |
|
Capital improvement capital
expenditures |
(6.4 |
) |
|
(7.5 |
) |
Corporate capital expenditures |
(3.7 |
) |
|
(9.2 |
) |
AFFO(b)(c)(e) |
$ |
395.2 |
|
|
$ |
365.7 |
|
Weighted average common shares
outstanding — diluted(d) |
334.9 |
|
|
333.5 |
|
AFFO per
share(b)(e) |
$ |
1.18 |
|
|
$ |
1.10 |
|
|
(a) Exclusive of income (loss) from
discontinued operations and related noncontrolling interest of $13
million for the three months ended March 31, 2015. |
(b) See "Non-GAAP Financial Measures
and Other Calculations" herein for a discussion of our definitions
of FFO and AFFO. |
(c) FFO and AFFO are reduced by cash
paid for preferred stock dividends. |
(d) The diluted weighted average
common shares outstanding assumes no conversion of preferred stock
in the share count. |
(e) The above reconciliation
excludes line items included in our definition which are not
applicable for the periods shown. |
|
The components of interest expense and amortization of
deferred financing costs for the three months ended March 31,
2016 and 2015 are as follows:
|
For the Three Months Ended |
|
March 31, |
|
March 31, |
(in millions) |
2016 |
|
2015 |
Interest expense on
debt obligations |
$ |
122.2 |
|
|
$ |
122.7 |
|
Amortization of
deferred financing costs and adjustments on long-term debt |
5.1 |
|
|
4.7 |
|
Amortization of
interest rate swaps(a) |
— |
|
|
7.5 |
|
Other, net |
(0.9 |
) |
|
(0.5 |
) |
Interest
expense and amortization of deferred financing costs |
$ |
126.4 |
|
|
$ |
134.4 |
|
|
(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 June 30, 2016
and the year ending December 31, 2016 are forecasted as
follows:
|
Q2 2016 |
|
Full Year 2016 |
(in millions) |
Outlook |
|
Outlook |
Interest expense on
debt obligations |
$ |
125 |
|
to |
$ |
127 |
|
|
$ |
501 |
|
to |
$ |
511 |
|
Amortization of
deferred financing costs |
$ |
4 |
|
to |
$ |
6 |
|
|
$ |
17 |
|
to |
$ |
19 |
|
Amortization of
adjustments on long-term debt |
$ |
0 |
|
to |
$ |
1 |
|
|
$ |
1 |
|
to |
$ |
3 |
|
Other, net |
$ |
(1 |
) |
to |
$ |
(1 |
) |
|
$ |
(4 |
) |
to |
$ |
(2 |
) |
Interest
expense and amortization of deferred financing costs |
$ |
128 |
|
to |
$ |
133 |
|
|
$ |
513 |
|
to |
$ |
533 |
|
Debt balances and maturity dates as of
March 31, 2016 are as follows:
(in
millions) |
Face Value |
|
Final Maturity |
Revolver |
210.0 |
|
Jan.
2021 |
Senior Unsecured Term
Loan A |
2,000.0 |
|
Jan.
2021 |
2016
Senior Notes(a) |
1,500.0 |
|
Feb.
2021/Feb. 2026 |
4.875% Senior Notes |
850.0 |
|
Apr.
2022 |
5.25% Senior Notes |
1,650.0 |
|
Jan.
2023 |
2012 Secured
Notes(b) |
1,500.0 |
|
Dec.
2017/Apr. 2023 |
Senior Secured Notes, Series 2009-1(c) |
136.8 |
|
Various |
Senior Secured Tower Revenue Notes, Series 2010-2-2010-3(d) |
1,600.0 |
|
Various |
Senior Secured Tower Revenue Notes, Series 2010-4-2010-6(e) |
1,300.0 |
|
Various |
Senior Secured Tower Revenue Notes, Series 2015-1-2015-2(f) |
1,000.0 |
|
Various |
Capital Leases and Other Obligations |
215.8 |
|
Various |
Total Debt |
$ |
11,962.6 |
|
|
Less:
Cash and Cash Equivalents(g) |
$ |
175.7 |
|
|
Net Debt |
$ |
11,786.9 |
|
|
|
(a) The 2016 Senior Notes consist of $600 million
aggregate principal amount of 3.4% senior notes due 2021 and $900
million aggregate principal amount of 4.45% senior notes due
2026. |
(b) 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. |
(c) The Senior Secured Notes, Series 2009-1 consist of
$66.8 million of principal as of March 31, 2016 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. |
(d) 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. |
(e) The Senior Secured Tower Revenue Notes Series
2010-5 and 2010-6 have principal amounts of $300.0 million and $1.0
billion with anticipated repayment dates of 2017 and 2020,
respectively. |
(f) The Senior Secured Tower Revenue Notes Series
2015-1 and 2015-2 have principal amounts of $300.0 million and
$700.0 million with anticipated repayment dates of 2022 and 2025,
respectively. |
(g) Excludes restricted cash. |
|
Net Debt to Last Quarter Annualized Adjusted EBITDA is
computed as follows:
|
For the Three Months Ended |
(in millions) |
March 31, 2016 |
Total face value of
debt |
$ |
11,962.6 |
|
Ending cash and cash
equivalents |
175.7 |
|
Total Net Debt |
$ |
11,786.9 |
|
|
|
Adjusted EBITDA for the
three months ended March 31, 2016 |
$ |
539.1 |
|
Last quarter annualized
adjusted EBITDA |
2,156.5 |
|
Net Debt to
Last Quarter Annualized Adjusted EBITDA |
5.5 |
x |
Sustaining capital expenditures for the
three months ended March 31, 2016 and 2015 is computed as
follows:
|
For the Three Months Ended |
(in millions) |
March 31,
2016 |
|
March 31,
2015 |
|
Towers |
|
Small Cells |
|
Other |
|
Total |
|
|
Towers |
|
Small Cells |
|
Other |
|
Total |
|
Capital
Expenditures |
$ |
111.0 |
|
$ |
80.2 |
|
$ |
2.3 |
|
$ |
193.5 |
|
|
$ |
133.1 |
|
$ |
62.9 |
|
$ |
5.6 |
|
$ |
201.6 |
|
Less: Land
purchases |
21.3 |
|
— |
|
— |
|
21.3 |
|
|
23.5 |
|
— |
|
— |
|
23.5 |
|
Less: Wireless
infrastructure construction and improvements |
83.5 |
|
78.6 |
|
— |
|
162.1 |
|
|
101.3 |
|
60.2 |
|
— |
|
161.5 |
|
Sustaining
capital expenditures |
$ |
6.3 |
|
$ |
1.6 |
|
$ |
2.3 |
|
$ |
10.2 |
|
|
$ |
8.3 |
|
$ |
2.7 |
|
$ |
5.6 |
|
$ |
16.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 our Outlook and
plans, projections, and estimates regarding (1) potential benefits,
returns and shareholder value which may be derived from our
business, assets, investments, dividends and acquisitions,
including on a long-term basis, (2) our strategy and strategic
position and strength of our business, (3) demand for wireless
connectivity, (4) demand for our wireless infrastructure and
services, (5) carrier network investments and upgrades, and the
benefits which may be derived therefrom, (6) innovation and
adoption of new technologies and applications for wireless
connectivity, (7) our growth and long-term prospects, (8) our
dividends, including our dividend plans, the amount and growth of
our dividends, the potential benefits therefrom and the tax
characterization thereof, (9) the U.S. wireless market, (10)
leasing activity, including the impact of such leasing activity on
our results and Outlook, (11) the TDC acquisition, including
potential benefits and impact therefrom and growth related thereto,
(12) our investments, including in small cells, and the potential
growth and benefits therefrom, (13) tenant non-renewal, including
timing and the impact thereof, (14) capital expenditures, including
sustaining capital expenditures, (15) timing items, (16)
straight-line adjustments, (17) tower acquisitions and builds, (18)
expenses, (19) site rental revenues and Site Rental Revenues, as
Adjusted, (20) site rental cost of operations, (21) site rental
gross margin and network services gross margin, (22) Adjusted
EBITDA, (23) interest expense and amortization of deferred
financing costs, (24) FFO, including on a per share basis, (25)
AFFO, including on a per share basis, (26) Organic Site Rental
Revenues and Organic Site Rental Revenue growth, (27) net income
(loss), including on a per share basis, (28) our common shares
outstanding, including on a diluted basis, and (29) the utility of
certain financial measures, including non-GAAP financial
measures. Such forward-looking statements are subject to
certain risks, uncertainties and assumptions prevailing market
conditions and the following:
- Our business depends on the demand for our wireless
infrastructure, driven primarily by demand for wireless
connectivity, 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.
- 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.
- 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, we may find it more
difficult to achieve favorable rental rates on our new or renewing
tenant leases.
- New technologies may reduce demand for our wireless
infrastructure or negatively impact our revenues.
- 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 retain rights to 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.
- New wireless technologies may not deploy or be adopted by
customers as rapidly or in the manner projected.
- 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 vulnerable to security breaches that could adversely
affect our business, operations, and reputation.
- Future dividend payments to our 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 related 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. As used
in this release, the term "including," and any variation thereof,
means "including without limitation."
|
CROWN CASTLE INTERNATIONAL CORP. |
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED) |
(in thousands, except share amounts) |
|
|
March 31, |
|
December 31, |
|
2016 |
|
2015 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
175,702 |
|
|
$ |
178,810 |
|
Restricted cash |
129,419 |
|
|
130,731 |
|
Receivables, net |
254,669 |
|
|
313,296 |
|
Prepaid expenses |
141,529 |
|
|
133,194 |
|
Other current assets |
119,563 |
|
|
225,214 |
|
Total current assets |
820,882 |
|
|
981,245 |
|
Deferred site rental
receivables |
1,317,898 |
|
|
1,306,408 |
|
Property and equipment,
net |
9,559,397 |
|
|
9,580,057 |
|
Goodwill |
5,531,064 |
|
|
5,513,551 |
|
Other intangible
assets, net |
3,707,129 |
|
|
3,779,915 |
|
Long-term prepaid rent
and other assets, net |
781,881 |
|
|
775,790 |
|
Total assets |
$ |
21,718,251 |
|
|
$ |
21,936,966 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
141,574 |
|
|
$ |
159,629 |
|
Accrued interest |
77,673 |
|
|
66,975 |
|
Deferred revenues |
332,711 |
|
|
322,623 |
|
Other accrued liabilities |
172,165 |
|
|
199,923 |
|
Current maturities of debt and
other obligations |
87,823 |
|
|
106,219 |
|
Total current liabilities |
811,946 |
|
|
855,369 |
|
Debt and other
long-term obligations |
11,778,176 |
|
|
12,043,740 |
|
Other long-term
liabilities |
1,975,135 |
|
|
1,948,636 |
|
Total liabilities |
14,565,257 |
|
|
14,847,745 |
|
Commitments and
contingencies |
|
|
|
CCIC stockholders'
equity: |
|
|
|
Common stock, $.01 par value;
600,000,000 shares authorized; shares issued and outstanding: March
31, 2016—337,559,718 and December 31, 2015—333,771,660 |
3,375 |
|
|
3,338 |
|
4.50% Mandatory Convertible
Preferred Stock, Series A, $.01 par value; 20,000,000 shares
authorized; shares issued and outstanding: March 31, 2016 and
December 31, 2015—9,775,000; aggregate liquidation value:
March 31, 2016 and December 31, 2015—$977,500 |
98 |
|
|
98 |
|
Additional paid-in capital |
9,874,862 |
|
|
9,548,580 |
|
Accumulated other comprehensive
income (loss) |
(4,977 |
) |
|
(4,398 |
) |
Dividends/distributions in excess
of earnings |
(2,720,364 |
) |
|
(2,458,397 |
) |
Total equity |
7,152,994 |
|
|
7,089,221 |
|
Total liabilities and equity |
$ |
21,718,251 |
|
|
$ |
21,936,966 |
|
|
|
|
|
|
|
|
|
|
CROWN CASTLE INTERNATIONAL CORP. |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED) |
(in thousands, except share and per share
amounts) |
|
|
Three Months Ended |
|
March 31, |
|
2016 |
|
2015 |
Net revenues: |
|
|
|
Site rental |
$ |
799,294 |
|
|
$ |
731,380 |
|
Network services and other |
135,090 |
|
|
169,091 |
|
Net revenues |
934,384 |
|
|
900,471 |
|
Operating
expenses: |
|
|
|
Costs of operations (exclusive of
depreciation, amortization and accretion): |
|
|
|
Site rental |
252,621 |
|
|
232,213 |
|
Network services and other |
80,971 |
|
|
86,918 |
|
General and administrative |
97,581 |
|
|
74,056 |
|
Asset write-down charges |
7,959 |
|
|
8,555 |
|
Acquisition and integration
costs |
5,638 |
|
|
2,016 |
|
Depreciation, amortization and
accretion |
277,875 |
|
|
251,806 |
|
Total operating expenses |
722,645 |
|
|
655,564 |
|
Operating income
(loss) |
211,739 |
|
|
244,907 |
|
Interest expense and
amortization of deferred financing costs |
(126,378 |
) |
|
(134,439 |
) |
Gains (losses) on
retirement of long-term obligations |
(30,550 |
) |
|
— |
|
Interest income |
174 |
|
|
56 |
|
Other income
(expense) |
(3,273 |
) |
|
(225 |
) |
Income (loss) from
continuing operations before income taxes |
51,712 |
|
|
110,299 |
|
Benefit (provision) for
income taxes |
(3,872 |
) |
|
1,435 |
|
Income (loss) from
continuing operations |
47,840 |
|
|
111,734 |
|
Discontinued
operations: |
|
|
|
Income (loss) from discontinued
operations, net of tax |
— |
|
|
13,378 |
|
Net income (loss) |
47,840 |
|
|
125,112 |
|
Less: Net income (loss)
attributable to the noncontrolling interest |
— |
|
|
2,325 |
|
Net income (loss)
attributable to CCIC stockholders |
47,840 |
|
|
122,787 |
|
Dividends on preferred
stock |
(10,997 |
) |
|
(10,997 |
) |
Net income (loss)
attributable to CCIC common stockholders |
$ |
36,843 |
|
|
$ |
111,790 |
|
|
|
|
|
Net income (loss)
attributable to CCIC common stockholders, per common share: |
|
|
|
Income (loss) from continuing
operations, basic |
$ |
0.11 |
|
|
$ |
0.30 |
|
Income (loss) from discontinued
operations, basic |
$ |
— |
|
|
$ |
0.04 |
|
Net income (loss) attributable to
CCIC common stockholders, basic |
$ |
0.11 |
|
|
$ |
0.34 |
|
Income (loss) from continuing
operations, diluted |
$ |
0.11 |
|
|
$ |
0.30 |
|
Income (loss) from discontinued
operations, diluted |
$ |
— |
|
|
$ |
0.04 |
|
Net income (loss) attributable to
CCIC common stockholders, diluted |
$ |
0.11 |
|
|
$ |
0.34 |
|
|
|
|
|
Weighted-average common
shares outstanding (in thousands): |
|
|
|
Basic |
334,155 |
|
|
332,712 |
|
Diluted |
334,929 |
|
|
333,485 |
|
|
|
|
|
|
|
|
|
CROWN CASTLE INTERNATIONAL CORP. |
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED) |
|
(in thousands) |
|
|
|
|
Three Months Ended March 31, |
|
|
2016 |
|
2015 |
|
Cash flows from operating activities: |
|
|
|
|
Net income (loss) from continuing
operations |
$ |
47,840 |
|
|
$ |
111,734 |
|
|
Adjustments
to reconcile net income (loss) from continuing operations to net
cash provided by (used for) operating activities: |
|
|
|
|
Depreciation,
amortization and accretion |
277,875 |
|
|
251,806 |
|
|
Gains (losses) on
retirement of long-term obligations |
30,550 |
|
|
— |
|
|
Amortization of
deferred financing costs and other non-cash interest |
4,211 |
|
|
11,736 |
|
|
Stock-based
compensation expense |
19,895 |
|
|
15,244 |
|
|
Asset write-down
charges |
7,959 |
|
|
8,555 |
|
|
Deferred income tax
benefit (provision) |
1,860 |
|
|
(3,706 |
) |
|
Other non-cash
adjustments, net |
2,166 |
|
|
(558 |
) |
|
Changes in assets and
liabilities, excluding the effects of acquisitions: |
|
|
|
|
Increase (decrease) in
liabilities |
17,426 |
|
|
30,032 |
|
|
Decrease (increase) in
assets |
27,874 |
|
|
28,215 |
|
|
Net cash provided by
(used for) operating activities |
437,656 |
|
|
453,058 |
|
|
Cash flows from investing activities: |
|
|
|
|
Payments for
acquisition of businesses, net of cash acquired |
(22,029 |
) |
|
(17,493 |
) |
|
Capital
expenditures |
(193,489 |
) |
|
(201,653 |
) |
|
Other investing
activities, net |
7,772 |
|
|
(514 |
) |
|
Net cash provided by
(used for) investing activities |
(207,746 |
) |
|
(219,660 |
) |
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from issuance
of long-term debt |
3,487,451 |
|
|
— |
|
|
Principal payments on
debt and other long-term obligations |
(14,152 |
) |
|
(31,497 |
) |
|
Purchases and
redemptions of long-term debt |
(2,876,390 |
) |
|
— |
|
|
Borrowings under
revolving credit facility |
2,065,000 |
|
|
230,000 |
|
|
Payments under
revolving credit facility |
(2,980,000 |
) |
|
(65,000 |
) |
|
Payments for financing
costs |
(17,971 |
) |
|
(1,904 |
) |
|
Net proceeds from
issuance of capital stock |
323,798 |
|
|
— |
|
|
Purchases of capital
stock |
(24,354 |
) |
|
(29,372 |
) |
|
Dividends/distributions
paid on common stock |
(299,090 |
) |
|
(273,685 |
) |
|
Dividends paid on
preferred stock |
(10,997 |
) |
|
(10,997 |
) |
|
Net (increase) decrease
in restricted cash |
1,113 |
|
|
10,214 |
|
|
Net cash provided by
(used for) financing activities |
(345,592 |
) |
|
(172,241 |
) |
|
Net
increase (decrease) in cash and cash equivalents - continuing
operations |
(115,682 |
) |
|
61,157 |
|
|
Discontinued operations: |
|
|
|
|
Net cash provided by
(used for) operating activities |
— |
|
|
7,736 |
|
|
Net cash provided by
(used for) investing activities |
113,150 |
|
|
(3,100 |
) |
|
Net
increase (decrease) in cash and cash equivalents - discontinued
operations |
113,150 |
|
|
4,636 |
|
|
Effect of exchange rate changes |
(576 |
) |
|
(1,260 |
) |
|
Cash and cash equivalents at beginning of
period |
178,810 |
|
|
175,620 |
|
(a) |
Cash and cash equivalents at end of period |
$ |
175,702 |
|
|
$ |
240,153 |
|
(a) |
Supplemental disclosure of cash flow
information: |
|
|
|
|
Interest paid |
111,469 |
|
|
120,949 |
|
|
Income taxes paid |
6,773 |
|
|
2,498 |
|
|
___________________ |
|
(a) Inclusive of cash and cash
equivalents included in discontinued operations. |
|
CROWN CASTLE INTERNATIONAL CORP. |
SEGMENT OPERATING RESULTS
(UNAUDITED) |
(in thousands) |
|
SEGMENT OPERATING RESULTS |
|
Three Months Ended
March 31, 2016 |
|
Three Months Ended
March 31, 2015 |
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
Consolidated |
|
Towers |
|
Small Cells |
|
Other |
|
Total |
|
Towers |
|
Small Cells |
|
Other |
|
Total |
Segment site rental
revenues |
$ |
702,840 |
|
|
$ |
96,454 |
|
|
|
|
$ |
799,294 |
|
|
$ |
674,907 |
|
|
$ |
56,473 |
|
|
|
|
$ |
731,380 |
|
Segment network service
and other revenue |
125,010 |
|
|
10,080 |
|
|
|
|
135,090 |
|
|
156,385 |
|
|
12,706 |
|
|
|
|
169,091 |
|
Segment revenues |
827,850 |
|
|
106,534 |
|
|
|
|
934,384 |
|
|
831,292 |
|
|
69,179 |
|
|
|
|
900,471 |
|
Segment site rental
cost of operations(a) |
204,565 |
|
|
37,483 |
|
|
|
|
242,048 |
|
|
204,633 |
|
|
20,513 |
|
|
|
|
225,146 |
|
Segment network service
and other cost of operations(a) |
69,989 |
|
|
8,035 |
|
|
|
|
78,024 |
|
|
76,191 |
|
|
9,454 |
|
|
|
|
85,645 |
|
Segment cost of
operations(a) |
274,554 |
|
|
45,518 |
|
|
|
|
320,072 |
|
|
280,824 |
|
|
29,967 |
|
|
|
|
310,791 |
|
Segment gross
margin(b) |
553,296 |
|
|
61,016 |
|
|
|
|
614,312 |
|
|
550,468 |
|
|
39,212 |
|
|
|
|
589,680 |
|
Segment general and
administrative expenses(a) |
23,599 |
|
|
15,522 |
|
|
36,071 |
|
|
75,192 |
|
|
22,722 |
|
|
7,560 |
|
|
30,098 |
|
|
60,380 |
|
Segment operating
profit(b) |
529,697 |
|
|
45,494 |
|
|
(36,071 |
) |
|
539,120 |
|
|
527,746 |
|
|
31,652 |
|
|
(30,098 |
) |
|
529,300 |
|
Stock-based compensation
expense |
|
|
|
|
30,705 |
|
|
30,705 |
|
|
|
|
|
|
16,841 |
|
|
16,841 |
|
Depreciation, amortization
and accretion |
|
|
|
|
277,875 |
|
|
277,875 |
|
|
|
|
|
|
251,806 |
|
|
251,806 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
126,378 |
|
|
126,378 |
|
|
|
|
|
|
134,439 |
|
|
134,439 |
|
Other expenses to
reconcile to income (loss) from continuing operations before income
taxes(c) |
|
|
|
|
52,450 |
|
|
52,450 |
|
|
|
|
|
|
15,915 |
|
|
15,915 |
|
Income (loss) from
continuing operations before income taxes |
|
|
|
|
|
|
$ |
51,712 |
|
|
|
|
|
|
|
|
$ |
110,299 |
|
|
(a) Segment
cost of operations exclude (1) stockbased compensation expense
of $8.3 million and $3.2 million for the three months ended March
31, 2016 and 2015, respectively and (2) prepaid lease purchase
price adjustments of $5.2 million for each of the three months
ended March 31, 2016 and 2015. Segment general and administrative
expenses exclude stock-based compensation expense of $22.4 million
and $13.7 million for the three months ended March 31,
2016 and 2015, respectively. |
(b) See
"Non-GAAP Financial Measures and Other Calculations" herein for a
discussion of our definitions of segment gross margin and segment
operating profit. |
(c) Other
expenses to reconcile to income (loss) from continuing operations
before income taxes includes a loss on retirement of long-term
obligations of approximately $30.6 million for the three months
ended March 31, 2016. |
Contacts: Jay Brown, CFO
Son Nguyen, VP - Corporate Finance
Crown Castle International Corp.
713-570-3050
Crown Castle (NYSE:CCI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Crown Castle (NYSE:CCI)
Historical Stock Chart
From Apr 2023 to Apr 2024