Crown Castle International Corp. (NYSE: CCI) ("Crown Castle") today
reported results for the quarter ended September 30, 2019, and
issued its full year 2020 Outlook as reflected in the table below:
(in
millions) |
Midpoint of CurrentFull Year2020 Outlook |
Midpoint of CurrentFull Year2019 Outlook |
Full Year2018 Actual |
Full Year 2019 Outlook to Full Year 2020 Outlook % Change |
Full Year 2018 to Full Year 2019 Outlook% Change |
Site rental revenues |
$5,219 |
$4,965 |
$4,716 |
+5% |
+5% |
Net income (loss) |
$1,128 |
$926 |
$671 |
+22% |
+38% |
Net income (loss) per
share—diluted(a) |
$2.53 |
$1.95 |
$1.34 |
+30% |
+46% |
Adjusted EBITDA(b) |
$3,592 |
$3,408 |
$3,141 |
+5% |
+9% |
AFFO(a)(b) |
$2,685 |
$2,479 |
$2,274 |
+8% |
+9% |
AFFO per share(a)(b) |
$6.33 |
$5.94 |
$5.48 |
+7% |
+8% |
(a) Attributable to CCIC common
stockholders.(b) See "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" included herein for further information and
reconciliation of this non-GAAP financial measure to net income
(loss).
"We delivered terrific results in the third
quarter and increased our annualized common stock dividend by 7% to
$4.80 per share," stated Jay Brown, Crown Castle’s Chief Executive
Officer. "We believe our ability to offer towers, small cells
and fiber solutions, which are all integral components of
communications networks and are shared among multiple tenants,
provides us the best opportunity to generate significant growth
while delivering high returns for our shareholders. Further,
we believe that the U.S. represents the best market in the world
for communications infrastructure ownership, and we are pursuing
that compelling opportunity with our comprehensive offering.
"In 2019, we are experiencing the highest
level of tower leasing activity in more than a decade, and we
expect to generate a similar level of new leasing activity from
towers in 2020 as our customers deploy additional cell sites and
spectrum in response to the rapid growth in mobile data
traffic. Additionally, we are constructing small cells for
our customers as they invest in their current networks while
beginning the early stages of 5G deployments, and we expect to
deploy a similar volume of small cells in 2020 as we are deploying
in 2019. With the positive momentum we continue to see in our
Towers and Fiber segments, we remain focused on investing in our
business to generate future growth while delivering dividend per
share growth of 7% to 8% per year."
RESULTS FOR THE QUARTERThe
table below sets forth select financial results for the three month
period ended September 30, 2019 and 2018.
(in
millions) |
Q3 2019 |
Q3 2018 |
Change |
% Change |
Site rental revenues |
$1,260 |
$1,184 |
+$76 |
+6% |
Net income (loss) |
$272 |
$164 |
+$108 |
+66% |
Net income (loss) per share—diluted(a) |
$0.58 |
$0.33 |
+$0.25 |
+76% |
Adjusted EBITDA(b) |
$882 |
$793 |
+$89 |
+11% |
AFFO(a)(b) |
$646 |
$579 |
+$67 |
+12% |
AFFO per share(a)(b) |
$1.55 |
$1.39 |
+$0.16 |
+12% |
(a) Attributable to CCIC common
stockholders.(b) See "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" included herein for further information and
reconciliation of this non-GAAP financial measure to net income
(loss).
HIGHLIGHTS FROM THE QUARTER
- Site rental
revenues. Site rental revenues grew approximately
6.4%, or $76 million, from third quarter 2018 to third quarter
2019, inclusive of approximately $70 million in Organic
Contribution to Site Rental Revenues and an approximately $6
million increase in straight-lined revenues. The $70 million
in Organic Contribution to Site Rental Revenues represents
approximately 6.0% growth, comprised of approximately 9.7% growth
from new leasing activity and contracted tenant escalations, net of
approximately 3.7% from tenant non-renewals.
- Net income.
Net income for the third quarter 2019 was $272 million, compared to
$164 million during the same period a year ago.
- Capital
expenditures. Capital expenditures during the
quarter were $540 million, comprised of $18 million of land
purchases, $29 million of sustaining capital expenditures, $491
million of discretionary capital expenditures and $2 million of
integration capital expenditures. The discretionary capital
expenditures of $491 million includes $371 million attributable to
Fiber and $120 million attributable to Towers.
- Common stock
dividend. During the quarter, Crown Castle paid
common stock dividends of $1.125 per common share, an increase of
approximately 7% on a per share basis compared to the same period a
year ago.
- Financing
activities. During the quarter, Crown Castle issued
$900 million of Senior Unsecured Notes, with net proceeds from the
offering and cash on hand used to repay outstanding indebtedness
under the revolving credit facility and commercial paper
program.
"The strong third quarter results reflect our
ability to leverage our leadership position in the U.S. across
towers, small cells and fiber solutions to generate attractive
growth," stated Dan Schlanger, Crown Castle's Chief Financial
Officer. "As we focus on closing out another successful year
of growth in 2019 and look toward 2020, we are excited about the
positive growth trends driving demand for our tower and fiber
assets. During the last five years, and inclusive of the
dividend increase we are announcing today, we have increased our
dividend by a compounded annual growth rate of approximately
8%. Looking forward, we believe we are in a great position to
deliver on our annual dividend growth target of 7% to 8% while at
the same time making significant investments in our business that
we believe will generate attractive long-term returns and support
future growth."
OUTLOOKThis 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
SEC.
The following table sets forth Crown Castle's
current Outlook for full year 2019 and full year 2020:
(in millions) |
Full Year 2019 |
Full Year 2020 |
Site rental revenues |
$4,950 |
to |
$4,980 |
$5,196 |
to |
$5,241 |
Site rental cost of operations(a) |
$1,442 |
to |
$1,472 |
$1,482 |
to |
$1,527 |
Net income (loss) |
$896 |
to |
$956 |
$1,088 |
to |
$1,168 |
Adjusted EBITDA(b) |
$3,393 |
to |
$3,423 |
$3,569 |
to |
$3,614 |
Interest expense and
amortization of deferred financing costs(c) |
$674 |
to |
$704 |
$691 |
to |
$736 |
FFO(b)(d) |
$2,363 |
to |
$2,393 |
$2,539 |
to |
$2,584 |
AFFO(b)(d) |
$2,464 |
to |
$2,494 |
$2,662 |
to |
$2,707 |
Weighted-average common shares
outstanding - diluted(e) |
418 |
424 |
(a) Exclusive of depreciation, amortization
and accretion.(b) See reconciliation of this non-GAAP financial
measure to net income (loss) and definition included
herein.(c) See reconciliation of "components of current
outlook for interest expense and amortization of deferred financing
costs" herein for a discussion of non-cash interest
expense.(d) Attributable to CCIC common
stockholders.(e) The assumption for diluted weighted-average
common shares outstanding for full year 2019 Outlook is based on
the diluted common shares outstanding as of September 30, 2019, and
does not include any assumed conversion of preferred stock in the
share count. The full year 2020 Outlook is inclusive of the assumed
conversion of preferred stock in August 2020, which we expect to
result in (1) an increase in the diluted weighted-average common
shares outstanding by approximately 6 million shares and (2) a
reduction in the amount of annual preferred stock dividends paid by
approximately $28 million when compared to the full year 2019
Outlook.
Full Year 2019 and 2020 OutlookThe current full
year 2019 Outlook remains unchanged from the prior full year 2019
Outlook issued on July 17, 2019. The table below compares the
midpoint of the full year 2020 Outlook and the midpoint of the full
year 2019 Outlook for select metrics.
(in
millions) |
Midpoint of Current Full Year 2020 Outlook |
Midpoint of Current Full Year 2019 Outlook |
Change |
% Change |
Site rental revenues |
$5,219 |
$4,965 |
+$254 |
+5% |
Net income (loss) |
$1,128 |
$926 |
+$202 |
+22% |
Net income (loss) per
share—diluted(a)(b) |
$2.53 |
$1.95 |
+$0.58 |
+30% |
Adjusted EBITDA(c) |
$3,592 |
$3,408 |
+$184 |
+5% |
AFFO(a)(c) |
$2,685 |
$2,479 |
+$206 |
+8% |
AFFO per share(a)(b)(c) |
$6.33 |
$5.94 |
+$0.39 |
+7% |
Weighted-average common shares
outstanding - diluted(b) |
424 |
418 |
+6 |
+1% |
(a) Attributable to CCIC common
stockholders.(b) The assumption for diluted weighted-average
common shares outstanding for full year 2019 Outlook is based on
the diluted common shares outstanding as of September 30, 2019, and
does not include any assumed conversion of preferred stock in the
share count. The full year 2020 Outlook is inclusive of the
assumed conversion of preferred stock in August 2020, which we
expect to result in (1) an increase in the diluted weighted-average
common shares outstanding by approximately 6 million shares and (2)
a reduction in the amount of annual preferred stock dividends paid
by approximately $28 million when compared to the full year 2019
Outlook. (c) See reconciliation of this non-GAAP
financial measure to net income (loss) and definition included
herein.
- The full year 2020 Outlook assumes
the proposed merger between T-Mobile and Sprint closes prior to the
end of the first quarter 2020.
- The 2020 Outlook also reflects the
impact of the assumed conversion of preferred stock in August
2020. This conversion will increase the diluted weighted
average common shares outstanding for 2020 by approximately 6
million and reduce the annual preferred stock dividends paid by
approximately $28 million when compared to 2019.
- The chart below reconciles the
components of expected growth in site rental revenues from 2019 to
2020 of $220 million to $265 million, inclusive of expected Organic
Contribution to Site Rental Revenues during 2020 of $265 million to
$305 million.Chart 1:
https://www.globenewswire.com/NewsRoom/AttachmentNg/2ce1289e-1d70-4c18-9d2f-e1dd0f737671
- New leasing activity is expected to
contribute $365 million to $395 million to 2020 Organic
Contribution to Site Rental Revenues, consisting of new leasing
activity from towers of $140 million to $150 million (compares to
$135 million to $145 million for 2019), small cells of $65 million
to $75 million (consistent with 2019 activity), and fiber solutions
of $160 million to $170 million (compares to $145 million to $155
million for 2019).
- The Outlook also reflects an
expected deployment of approximately 10,000 small cell nodes during
2020 (similar to expected deployment levels in 2019) and a
consistent contribution to growth from fiber solutions when
compared to 2019.
- The chart below reconciles the
components of expected growth in AFFO from 2019 to 2020 of $185
million to $230 million.Chart 2:
https://www.globenewswire.com/NewsRoom/AttachmentNg/fb068b50-43cd-4b12-9f45-6f0a80798376
- Additional information is available
in Crown Castle's quarterly Supplemental Information Package posted
in the Investors section of its website.
DIVIDEND INCREASE
ANNOUNCEMENTCrown Castle's Board of Directors has declared
a quarterly cash dividend of $1.20 per common share, representing
an increase of approximately 7% over the previous quarterly
dividend of $1.125 per share. The quarterly dividend will be
payable on December 31, 2019 to common stockholders of record at
the close of business on December 13, 2019. Future dividends
are subject to the approval of Crown Castle's Board of
Directors.
CONFERENCE CALL DETAILSCrown
Castle has scheduled a conference call for Thursday, October 17,
2019, at 10:30 a.m. Eastern time to discuss its third quarter 2019
results. The conference call may be accessed by dialing
800-367-2403 and asking for the Crown Castle call (access code
2038078) at least 30 minutes prior to the start time. The
conference call may also be accessed live over the Internet at
investor.crowncastle.com. Supplemental materials for the call
have been posted on the Crown Castle website at
investor.crowncastle.com.
A telephonic replay of the conference call will
be available from 1:30 p.m. Eastern time on Thursday, October 17,
2019, through 1:30 p.m. Eastern time on Wednesday, January 15,
2020, and may be accessed by dialing 888-203-1112 and using access
code 2038078. An audio archive will also be available on the
company's website at investor.crowncastle.com shortly after
the call and will be accessible for approximately 90 days.
ABOUT CROWN CASTLECrown Castle
owns, operates and leases more than 40,000 cell towers
and more than 75,000 route miles of fiber supporting small
cells and fiber solutions across every major U.S. market.
This nationwide portfolio of communications infrastructure connects
cities and communities to essential data, technology and wireless
service - bringing information, ideas and innovations to the people
and businesses that need them. For more information on Crown
Castle, please visit www.crowncastle.com.
Non-GAAP Financial Measures, Segment Measures and Other
Calculations
This press release includes presentations of
Adjusted EBITDA, Adjusted Funds from Operations ("AFFO"), including
per share amounts, Funds from Operations ("FFO"), including per
share amounts, and Organic Contribution to Site Rental Revenues,
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")).
Our non-GAAP financial measures may not be
comparable to similarly titled measures of other companies,
including other companies in the communications infrastructure
sector or other real estate investment trusts ("REITs"). Our
definition of FFO is consistent with guidelines from the National
Association of Real Estate Investment Trusts with the exception of
the impact of income taxes in periods prior to our REIT conversion
in 2014.
In addition to the non-GAAP financial measures
used herein, we also provide Segment Site Rental Gross Margin,
Segment Services and Other Gross Margin and Segment Operating
Profit, which are key measures used by management to evaluate our
operating segments. These segment measures are provided
pursuant to GAAP requirements related to segment reporting.
In addition, we provide the components of certain GAAP measures,
such as capital expenditures.
Our non-GAAP financial measures are presented as
additional information because management believes these measures
are useful indicators of the financial performance of our
business. Among other things, management believes that:
- Adjusted EBITDA is useful to
investors or other interested parties in evaluating our financial
performance. Adjusted EBITDA is the primary measure used by
management (1) to evaluate the economic productivity of our
operations and (2) for purposes of making decisions about
allocating resources to, and assessing the performance of, our
operations. Management believes that Adjusted EBITDA helps
investors or other interested parties meaningfully evaluate and
compare the results of our operations (1) from period to period and
(2) to our competitors, by removing the impact of our capital
structure (primarily interest charges from our outstanding debt)
and asset base (primarily depreciation, amortization and accretion)
from our financial results. Management also believes Adjusted
EBITDA is frequently used by investors or other interested parties
in the evaluation of the communications infrastructure sector and
other REITs to measure financial performance without regard to
items such as depreciation, amortization and accretion which can
vary depending upon accounting methods and the book value of
assets. In addition, Adjusted EBITDA is similar to the
measure of current financial performance generally used in our debt
covenant calculations. Adjusted EBITDA should be considered
only as a supplement to net income computed in accordance with GAAP
as a measure of our performance.
- AFFO, including per share amounts,
is useful to investors or other interested parties in evaluating
our financial performance. Management believes that AFFO
helps investors or other interested parties meaningfully evaluate
our financial performance as it includes (1) the impact of our
capital structure (primarily interest expense on our outstanding
debt and dividends on our preferred stock) and (2) sustaining
capital expenditures, and excludes the impact of our (a) asset base
(primarily depreciation, amortization and accretion) and (b)
certain non-cash items, including straight-lined revenues and
expenses related to fixed escalations and rent free periods.
GAAP requires rental revenues and expenses related to leases that
contain specified rental increases over the life of the lease to be
recognized evenly over the life of the lease. In accordance
with GAAP, if payment terms call for fixed escalations, or rent
free periods, the revenue or expense is recognized on a
straight-lined basis over the fixed, non-cancelable term of the
contract. Management notes that Crown Castle uses AFFO only
as a performance measure. AFFO should be considered only as a
supplement to net income computed in accordance with GAAP as a
measure of our performance and should not be considered as an
alternative to cash flows from operations or as residual cash flow
available for discretionary investment.
- FFO, including per share amounts,
is useful to investors or other interested parties in evaluating
our financial performance. Management believes that FFO may
be used by investors or other interested parties as a basis to
compare our financial performance with that of other REITs.
FFO helps investors or other interested parties meaningfully
evaluate financial performance by excluding the impact of our asset
base (primarily depreciation, amortization and accretion). FFO is
not a key performance indicator used by Crown Castle. FFO
should be considered only as a supplement to net income computed in
accordance with GAAP as a measure of our performance and should not
be considered as an alternative to cash flow from operations.
- Organic Contribution to Site Rental
Revenues is useful to investors or other interested parties in
understanding the components of the year-over-year changes in our
site rental revenues computed in accordance with GAAP.
Management uses the Organic Contribution to Site Rental Revenues to
assess year-over-year growth rates for our rental activities, to
evaluate current performance, to capture trends in rental rates,
new leasing activities and tenant non-renewals in our core
business, as well to forecast future results. Organic Contribution
to Site Rental Revenues is not meant as an alternative measure of
revenue and should be considered only as a supplement in
understanding and assessing the performance of our site rental
revenues computed in accordance with GAAP.
We define our non-GAAP financial measures,
segment measures and other calculations as follows:
Non-GAAP Financial Measures
Adjusted EBITDA. We define 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.
Adjusted Funds from Operations. We define
Adjusted Funds from Operations as FFO before straight-lined
revenue, straight-lined 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, (gains) losses 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 sustaining capital expenditures.
AFFO per share. We define AFFO per share as AFFO
divided by diluted weighted-average common shares outstanding.
Funds from Operations. We define 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. We define FFO per share as FFO
divided by the diluted weighted-average common shares
outstanding.
Organic Contribution to Site Rental Revenues. We
define the Organic Contribution to Site Rental Revenues as the sum
of the change in GAAP site rental revenues related to (1) new
leasing activity, including revenues from the construction of small
cells and the impact of prepaid rent, (2) escalators and less (3)
non-renewals of tenant contracts.
Segment Measures
Segment Site Rental Gross Margin. We
define Segment Site Rental Gross Margin as segment site rental
revenues less segment site rental cost of operations, excluding
stock-based compensation expense and prepaid lease purchase price
adjustments recorded in consolidated site rental cost of
operations.
Segment Services and Other Gross Margin.
We define Segment Services and Other Gross Margin as segment
services and other revenues less segment services and other cost of
operations, excluding stock-based compensation expense recorded in
consolidated services and other cost of operations.
Segment Operating Profit. We define
Segment Operating Profit as segment site rental gross margin plus
segment services and other gross margin, less selling, general and
administrative expenses attributable to the respective segment.
All of these measurements of profit or loss are
exclusive of depreciation, amortization and accretion, which are
shown separately. Additionally, certain costs are shared
across segments and are reflected in our segment measures through
allocations that management believes to be reasonable.
Other Calculations
Discretionary capital expenditures. We
define discretionary capital expenditures as those capital
expenditures made with respect to activities which we believe
exhibit sufficient potential to enhance long-term stockholder
value. They primarily consist of expansion or development of
communications infrastructure (including capital expenditures
related to (1) enhancing communications infrastructure assets in
order to add new tenants for the first time or support subsequent
tenant equipment augmentations, or (2) modifying the structure of a
communications infrastructure asset to accommodate additional
tenants), and construction of new communications
infrastructure. Discretionary capital expenditures also
include purchases of land interests (which primarily relate to land
assets under towers as we seek to manage our interests in the land
beneath our towers), certain technology-related investments
necessary to support and scale future customer demand for our
communications infrastructure and other capital projects.
Integration capital expenditures. We
define integration capital expenditures as those capital
expenditures made as a result of integrating acquired companies
into our business.
Sustaining capital expenditures. We define
sustaining capital expenditures as those capital expenditures not
otherwise categorized as either discretionary or integration
capital expenditures, such as (1) maintenance capital expenditures
on our communications infrastructure assets that enable our
tenants' ongoing quiet enjoyment of the communications
infrastructure and (2) ordinary corporate capital expenditures.
The tables set forth on the following pages
reconcile the non-GAAP financial measures used herein 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, Segment
Measures and Other Calculations to Comparable GAAP Financial
Measures:
Reconciliation of Historical Adjusted
EBITDA:
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
September 30, 2019 |
|
September 30, 2018 |
|
December 31, 2018 |
(in millions) |
|
|
|
|
|
Net income (loss) |
$ |
272 |
|
|
$ |
164 |
|
|
$ |
671 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
Asset write-down charges |
2 |
|
|
8 |
|
|
26 |
|
Acquisition and integration costs |
4 |
|
|
4 |
|
|
27 |
|
Depreciation, amortization and accretion |
389 |
|
|
385 |
|
|
1,528 |
|
Amortization of prepaid lease purchase price adjustments |
5 |
|
|
5 |
|
|
20 |
|
Interest expense and amortization of deferred financing
costs(a) |
173 |
|
|
160 |
|
|
642 |
|
(Gains) losses on retirement of long-term obligations |
— |
|
|
32 |
|
|
106 |
|
Interest income |
(2 |
) |
|
(1 |
) |
|
(5 |
) |
Other (income) expense |
5 |
|
|
(1 |
) |
|
(1 |
) |
(Benefit) provision for income taxes |
5 |
|
|
5 |
|
|
19 |
|
Stock-based compensation expense |
29 |
|
|
32 |
|
|
108 |
|
Adjusted EBITDA(b)(c) |
$ |
882 |
|
|
$ |
793 |
|
|
$ |
3,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See the reconciliation of "components of
historical interest expense and amortization of deferred financing
costs" herein for a discussion of non-cash interest expense.(b) See
"Non-GAAP Financial Measures, Segment Measures and Other
Calculations" herein for a discussion of our definition of Adjusted
EBITDA.(c) The above reconciliation excludes line items included in
our definition which are not applicable for the periods shown.
Reconciliation of Current Outlook for Adjusted
EBITDA:
|
Full Year 2019 |
|
Full Year 2020 |
(in millions) |
Outlook |
|
Outlook |
Net income (loss) |
$ |
896 |
|
to |
$ |
956 |
|
|
$ |
1,088 |
|
to |
$ |
1,168 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset write-down charges |
$ |
23 |
|
to |
$ |
33 |
|
|
$ |
20 |
|
to |
$ |
30 |
|
Acquisition and integration costs |
$ |
11 |
|
to |
$ |
21 |
|
|
$ |
7 |
|
to |
$ |
17 |
|
Depreciation, amortization and accretion |
$ |
1,576 |
|
to |
$ |
1,611 |
|
|
$ |
1,503 |
|
to |
$ |
1,598 |
|
Amortization of prepaid lease purchase price adjustments |
$ |
19 |
|
to |
$ |
21 |
|
|
$ |
18 |
|
to |
$ |
20 |
|
Interest expense and amortization of deferred financing
costs(a) |
$ |
674 |
|
to |
$ |
704 |
|
|
$ |
691 |
|
to |
$ |
736 |
|
(Gains) losses on retirement of long-term obligations |
$ |
2 |
|
to |
$ |
2 |
|
|
$ |
0 |
|
to |
$ |
0 |
|
Interest income |
$ |
(8 |
) |
to |
$ |
(4 |
) |
|
$ |
(7 |
) |
to |
$ |
(3 |
) |
Other (income) expense |
$ |
2 |
|
to |
$ |
4 |
|
|
$ |
(1 |
) |
to |
$ |
1 |
|
(Benefit) provision for income taxes |
$ |
16 |
|
to |
$ |
24 |
|
|
$ |
16 |
|
to |
$ |
24 |
|
Stock-based compensation expense |
$ |
112 |
|
to |
$ |
120 |
|
|
$ |
126 |
|
to |
$ |
130 |
|
Adjusted EBITDA(b)(c) |
$ |
3,393 |
|
to |
$ |
3,423 |
|
|
$ |
3,569 |
|
to |
$ |
3,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See the reconciliation of "components of
current outlook for interest expense and amortization of deferred
financing costs" herein for a discussion of non-cash interest
expense.(b) See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definition of
Adjusted EBITDA.(c) The above reconciliation excludes line items
included in our definition which are not applicable for the periods
shown.
Reconciliation of Historical FFO and
AFFO:
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
For the Twelve Months Ended |
(in millions) |
September 30, 2019 |
|
September 30, 2018 |
|
September 30, 2019 |
|
September 30, 2018 |
|
December 31, 2018 |
Net income (loss) |
$ |
272 |
|
|
$ |
164 |
|
|
$ |
729 |
|
|
$ |
458 |
|
|
$ |
671 |
|
Real estate related
depreciation, amortization and accretion |
375 |
|
|
371 |
|
|
1,134 |
|
|
1,097 |
|
|
1,472 |
|
Asset write-down charges |
2 |
|
|
8 |
|
|
13 |
|
|
18 |
|
|
26 |
|
Dividends on preferred
stock |
(28 |
) |
|
(28 |
) |
|
(85 |
) |
|
(85 |
) |
|
(113 |
) |
FFO(a)(b)(c)(d) |
$ |
622 |
|
|
$ |
515 |
|
|
$ |
1,789 |
|
|
$ |
1,487 |
|
|
$ |
2,055 |
|
Weighted-average common shares outstanding—diluted(e) |
418 |
|
|
416 |
|
|
418 |
|
|
414 |
|
|
415 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
1.49 |
|
|
$ |
1.24 |
|
|
$ |
4.28 |
|
|
$ |
3.59 |
|
|
$ |
4.95 |
|
|
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
622 |
|
|
$ |
515 |
|
|
$ |
1,789 |
|
|
$ |
1,487 |
|
|
$ |
2,055 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
|
|
Straight-lined revenue |
(22 |
) |
|
(17 |
) |
|
(62 |
) |
|
(53 |
) |
|
(72 |
) |
Straight-lined expense |
24 |
|
|
23 |
|
|
70 |
|
|
69 |
|
|
90 |
|
Stock-based compensation expense |
29 |
|
|
32 |
|
|
90 |
|
|
84 |
|
|
108 |
|
Non-cash portion of tax provision |
1 |
|
|
2 |
|
|
2 |
|
|
(1 |
) |
|
2 |
|
Non-real estate related depreciation, amortization and
accretion |
14 |
|
|
14 |
|
|
42 |
|
|
41 |
|
|
56 |
|
Amortization of non-cash interest expense |
— |
|
|
2 |
|
|
1 |
|
|
5 |
|
|
7 |
|
Other (income) expense |
5 |
|
|
(1 |
) |
|
6 |
|
|
— |
|
|
(1 |
) |
(Gains) losses on retirement of long-term obligations |
— |
|
|
32 |
|
|
2 |
|
|
106 |
|
|
106 |
|
Acquisition and integration costs |
4 |
|
|
4 |
|
|
10 |
|
|
18 |
|
|
27 |
|
Sustaining capital expenditures |
(29 |
) |
|
(27 |
) |
|
(80 |
) |
|
(75 |
) |
|
(105 |
) |
AFFO(a)(b)(c)(d) |
$ |
646 |
|
|
$ |
579 |
|
|
$ |
1,871 |
|
|
$ |
1,683 |
|
|
$ |
2,274 |
|
Weighted-average common shares outstanding—diluted(e) |
418 |
|
|
416 |
|
|
418 |
|
|
414 |
|
|
415 |
|
AFFO per share(a)(b)(c)(d)(e) |
$ |
1.55 |
|
|
$ |
1.39 |
|
|
$ |
4.48 |
|
|
$ |
4.06 |
|
|
$ |
5.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" herein for a discussion of our
definitions of FFO, including per share amounts, and AFFO,
including per share amounts.(b) FFO and AFFO are reduced by cash
paid for preferred stock dividends during the period in which they
are paid.(c) Attributable to CCIC common stockholders.(d) The above
reconciliation excludes line items included in our definition which
are not applicable for the periods shown.(e) For all periods
presented, the diluted weighted-average common shares outstanding
does not include any assumed conversion of preferred stock in the
share count.
Reconciliation of Current Outlook for
FFO and AFFO:
|
Full Year 2019 |
Full Year 2020 |
(in millions) |
Outlook |
Outlook |
Net income (loss) |
$ |
896 |
|
to |
$ |
956 |
|
$ |
1,088 |
|
to |
$ |
1,168 |
|
Real estate related
depreciation, amortization and accretion |
$ |
1,528 |
|
to |
$ |
1,548 |
|
$ |
1,454 |
|
to |
$ |
1,534 |
|
Asset write-down charges |
$ |
23 |
|
to |
$ |
33 |
|
$ |
20 |
|
to |
$ |
30 |
|
Dividends on preferred
stock |
$ |
(113 |
) |
to |
$ |
(113 |
) |
$ |
(85 |
) |
to |
$ |
(85 |
) |
FFO(a)(b)(c)(d) |
$ |
2,363 |
|
to |
$ |
2,393 |
|
$ |
2,539 |
|
to |
$ |
2,584 |
|
Weighted-average common shares outstanding—diluted(e) |
|
418 |
|
|
424 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
5.66 |
|
to |
$ |
5.73 |
|
$ |
5.99 |
|
to |
$ |
6.09 |
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
2,363 |
|
to |
$ |
2,393 |
|
$ |
2,539 |
|
to |
$ |
2,584 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
Straight-lined revenue |
$ |
(74 |
) |
to |
$ |
(54 |
) |
$ |
(53 |
) |
to |
$ |
(33 |
) |
Straight-lined expense |
$ |
81 |
|
to |
$ |
101 |
|
$ |
70 |
|
to |
$ |
90 |
|
Stock-based compensation expense |
$ |
112 |
|
to |
$ |
120 |
|
$ |
126 |
|
to |
$ |
130 |
|
Non-cash portion of tax provision |
$ |
(6 |
) |
to |
$ |
9 |
|
$ |
(6 |
) |
to |
$ |
9 |
|
Non-real estate related depreciation, amortization and
accretion |
$ |
48 |
|
to |
$ |
63 |
|
$ |
49 |
|
to |
$ |
64 |
|
Amortization of non-cash interest expense |
$ |
(5 |
) |
to |
$ |
5 |
|
$ |
(4 |
) |
to |
$ |
6 |
|
Other (income) expense |
$ |
2 |
|
to |
$ |
4 |
|
$ |
(1 |
) |
to |
$ |
1 |
|
(Gains) losses on retirement of long-term obligations |
$ |
2 |
|
to |
$ |
2 |
|
$ |
0 |
|
to |
$ |
0 |
|
Acquisition and integration costs |
$ |
11 |
|
to |
$ |
21 |
|
$ |
7 |
|
to |
$ |
17 |
|
Sustaining capital expenditures |
$ |
(136 |
) |
to |
$ |
(106 |
) |
$ |
(123 |
) |
to |
$ |
(103 |
) |
AFFO(a)(b)(c)(d) |
$ |
2,464 |
|
to |
$ |
2,494 |
|
$ |
2,662 |
|
to |
$ |
2,707 |
|
Weighted-average common shares outstanding—diluted(e) |
|
418 |
|
|
424 |
|
AFFO per share(a)(b)(c)(d)(e) |
$ |
5.90 |
|
to |
$ |
5.97 |
|
$ |
6.28 |
|
to |
$ |
6.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" herein for a discussion of our
definitions of FFO, including per share amounts, and AFFO,
including per share amounts.(b) FFO and AFFO are reduced by cash
paid for preferred stock dividends during the period in which they
are paid.(c) Attributable to CCIC common stockholders.(d) The above
reconciliation excludes line items included in our definition which
are not applicable for the periods shown.(e) The assumption for
diluted weighted-average common shares outstanding for full year
2019 Outlook is based on the diluted common shares outstanding as
of September 30, 2019, and does not include any assumed conversion
of preferred stock in the share count. The full year 2020
Outlook is inclusive of the assumed conversion of preferred stock
in August 2020, which we expect to result in (1) an increase in the
diluted weighted-average common shares outstanding by approximately
6 million shares and (2) a reduction in the amount of annual
preferred stock dividends paid by approximately $28 million when
compared to the full year 2019 Outlook.
For Comparative Purposes - Reconciliation of Previous
Outlook for Adjusted EBITDA:
|
Previously Issued |
|
Full Year 2019 |
(in millions) |
Outlook |
Net income (loss) |
$ |
896 |
|
to |
$ |
956 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
Asset write-down charges |
$ |
23 |
|
to |
$ |
33 |
|
Acquisition and integration costs |
$ |
11 |
|
to |
$ |
21 |
|
Depreciation, amortization and accretion |
$ |
1,576 |
|
to |
$ |
1,611 |
|
Amortization of prepaid lease purchase price adjustments |
$ |
19 |
|
to |
$ |
21 |
|
Interest expense and amortization of deferred financing costs |
$ |
674 |
|
to |
$ |
704 |
|
(Gains) losses on retirement of long-term obligations |
$ |
2 |
|
to |
$ |
2 |
|
Interest income |
$ |
(8 |
) |
to |
$ |
(4 |
) |
Other (income) expense |
$ |
2 |
|
to |
$ |
4 |
|
(Benefit) provision for income taxes |
$ |
16 |
|
to |
$ |
24 |
|
Stock-based compensation expense |
$ |
112 |
|
to |
$ |
120 |
|
Adjusted EBITDA(a)(b) |
$ |
3,393 |
|
to |
$ |
3,423 |
|
|
|
|
|
|
|
|
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" herein for a discussion of our
definition of Adjusted EBITDA.(b) The above reconciliation excludes
line items included in our definition which are not applicable for
the periods shown.
For Comparative Purposes -
Reconciliation of Previous Outlook for FFO and AFFO:
|
Previously Issued |
|
Full Year 2019 |
(in millions) |
Outlook |
Net income (loss) |
$ |
896 |
|
to |
$ |
956 |
|
Real estate related
depreciation, amortization and accretion |
$ |
1,528 |
|
to |
$ |
1,548 |
|
Asset write-down charges |
$ |
23 |
|
to |
$ |
33 |
|
Dividends on preferred
stock |
$ |
(113 |
) |
to |
$ |
(113 |
) |
FFO(a)(b)(c)(d) |
$ |
2,363 |
|
to |
$ |
2,393 |
|
Weighted-average common shares outstanding—diluted(e) |
|
418 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
5.66 |
|
to |
$ |
5.73 |
|
|
|
|
|
FFO (from above) |
$ |
2,363 |
|
to |
$ |
2,393 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
Straight-lined revenue |
$ |
(74 |
) |
to |
$ |
(54 |
) |
Straight-lined expense |
$ |
81 |
|
to |
$ |
101 |
|
Stock-based compensation expense |
$ |
112 |
|
to |
$ |
120 |
|
Non-cash portion of tax provision |
$ |
(6 |
) |
to |
$ |
9 |
|
Non-real estate related depreciation, amortization and
accretion |
$ |
48 |
|
to |
$ |
63 |
|
Amortization of non-cash interest expense |
$ |
(5 |
) |
to |
$ |
5 |
|
Other (income) expense |
$ |
2 |
|
to |
$ |
4 |
|
(Gains) losses on retirement of long-term obligations |
$ |
2 |
|
to |
$ |
2 |
|
Acquisition and integration costs |
$ |
11 |
|
to |
$ |
21 |
|
Maintenance capital expenditures |
$ |
(90 |
) |
to |
$ |
(75 |
) |
Corporate capital expenditures |
$ |
(46 |
) |
to |
$ |
(31 |
) |
AFFO(a)(b)(c)(d) |
$ |
2,464 |
|
to |
$ |
2,494 |
|
Weighted-average common shares outstanding—diluted(e) |
|
418 |
|
AFFO per share(a)(b)(c)(d)(e) |
$ |
5.90 |
|
to |
$ |
5.97 |
|
|
|
|
|
|
|
|
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" herein for a discussion of our
definitions of FFO, including per share amounts, and AFFO,
including per share amounts.(b) FFO and AFFO are reduced by cash
paid for preferred stock dividends during the period in which they
are paid.(c) Attributable to CCIC common stockholders.(d) The above
reconciliation excludes line items included in our definition which
are not applicable for the periods shown.(e) The diluted
weighted-average common shares outstanding in the previously issued
full year 2019 Outlook does not include any assumed conversion of
preferred stock in the share count.
The components of changes in site rental revenues for
the quarters ended September 30, 2019 and 2018 are as
follows:
|
Three Months Ended September 30, |
(dollars in millions) |
2019 |
|
2018 |
Components of changes in site
rental revenues(a): |
|
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$ |
1,168 |
|
|
$ |
896 |
|
|
|
|
|
New leasing activity(b)(c) |
92 |
|
|
54 |
|
Escalators |
22 |
|
|
21 |
|
Non-renewals |
(44 |
) |
|
(23 |
) |
Organic Contribution to Site Rental Revenues(d) |
70 |
|
|
52 |
|
Straight-lined revenues associated with fixed escalators |
22 |
|
|
17 |
|
Acquisitions(e) |
— |
|
|
219 |
|
Other |
— |
|
|
— |
|
Total GAAP site rental
revenues |
$ |
1,260 |
|
|
$ |
1,184 |
|
|
|
|
|
Year-over-year changes
in revenue: |
|
|
|
Reported GAAP site rental
revenues |
6.4 |
% |
|
|
Organic Contribution to Site
Rental Revenues(d)(f) |
6.0 |
% |
|
|
|
|
|
|
|
(a) Additional information regarding Crown
Castle's site rental revenues, including projected revenue from
tenant licenses, straight-lined revenues and prepaid rent is
available in Crown Castle's quarterly Supplemental Information
Package posted in the Investors section of its website.(b) Includes
revenues from amortization of prepaid rent in accordance with
GAAP.(c) Includes revenues from the construction of new small cell
nodes, exclusive of straight-lined revenues related to fixed
escalators.(d) See "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" herein.(e) Represents the initial
contribution of recent acquisitions. The financial impact of
recent acquisitions is excluded from Organic Contribution to Site
Rental Revenues until the one-year anniversary of the
acquisition.(f) Calculated as the percentage change from prior year
site rental revenues, exclusive of straight-lined revenues
associated with fixed escalations, compared to Organic Contribution
to Site Rental Revenues for the current period.
The components of the changes in site rental revenues
for the years ending December 31, 2019 and December 31,
2020 are forecasted as follows:
(dollars in millions) |
Full Year2019 Outlook |
Full Year 2020 Outlook |
Components of changes in site
rental revenues(a): |
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$ |
4,643 |
|
$ |
4,901 |
|
|
|
|
New leasing activity(b)(c) |
345-375 |
365-395 |
Escalators |
85-95 |
90-100 |
Non-renewals |
(190)-(170) |
(195)-(175) |
Organic Contribution to Site Rental Revenues(d) |
245-275 |
265-305 |
Straight-lined revenues associated with fixed escalators |
54-74 |
33-53 |
Acquisitions(e) |
|
— |
|
|
— |
|
Other |
|
— |
|
|
— |
|
Total GAAP site rental
revenues |
$4,950-$4,980 |
$5,196-$5,241 |
|
|
|
Year-over-year changes
in revenue: |
|
|
Reported GAAP site rental
revenues(f) |
|
5.3 |
% |
|
5.1 |
% |
Organic Contribution to Site
Rental Revenues(d)(f)(g) |
|
5.6 |
% |
|
5.8 |
% |
|
|
|
|
|
|
|
(a) Additional information regarding Crown
Castle's site rental revenues, including projected revenue from
tenant licenses, straight-lined revenues and prepaid rent is
available in Crown Castle's quarterly Supplemental Information
Package posted in the Investors section of its website.(b) Includes
revenues from amortization of prepaid rent in accordance with
GAAP.(c) Includes revenues from the construction of new small cell
nodes, exclusive of straight-lined revenues related to fixed
escalators.(d) See "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" herein.(e) Represents the contribution from
recent acquisitions. The financial impact of recent
acquisitions is excluded from Organic Contribution to Site Rental
Revenues until the one-year anniversary of the acquisition.(f)
Calculated based on midpoint of full year 2019 Outlook and full
year 2020 Outlook.(g) Calculated as the percentage change from
prior year site rental revenues, exclusive of straight-lined
revenues associated with fixed escalations, compared to Organic
Contribution to Site Rental Revenues for the current period.
Components of Historical Interest
Expense and Amortization of Deferred Financing Costs:
|
For the Three Months Ended |
(in millions) |
September 30, 2019 |
|
September 30, 2018 |
Interest expense on debt obligations |
$ |
173 |
|
|
$ |
158 |
|
Amortization of deferred
financing costs and adjustments on long-term debt, net |
5 |
|
|
5 |
|
Other, net |
(5 |
) |
|
(3 |
) |
Interest expense and
amortization of deferred financing costs |
$ |
173 |
|
|
$ |
160 |
|
|
|
|
|
|
|
|
|
Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing
Costs:
|
Full Year 2019 |
|
Full Year 2020 |
(in millions) |
Outlook |
|
Outlook |
Interest expense on debt obligations |
$ |
683 |
|
to |
$ |
693 |
|
|
$ |
703 |
|
to |
$ |
723 |
|
Amortization of deferred
financing costs and adjustments on long-term debt, net |
$ |
17 |
|
to |
$ |
22 |
|
|
$ |
20 |
|
to |
$ |
25 |
|
Other, net |
$ |
(22 |
) |
to |
$ |
(17 |
) |
|
$ |
(24 |
) |
to |
$ |
(19 |
) |
Interest expense and
amortization of deferred financing costs |
$ |
674 |
|
to |
$ |
704 |
|
|
$ |
691 |
|
to |
$ |
736 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt balances and maturity dates as of
September 30, 2019 are as follows:
(in millions) |
Face Value |
|
Final Maturity |
Cash, cash equivalents and restricted cash |
$ |
325 |
|
|
|
|
|
|
3.849% Secured Notes |
1,000 |
|
Apr. 2023 |
Secured Notes, Series 2009-1, Class A-2(a) |
69 |
|
Aug. 2029 |
Tower Revenue Notes, Series
2015-1(b) |
300 |
|
May 2042 |
Tower Revenue Notes, Series
2018-1(b) |
250 |
|
July 2043 |
Tower Revenue Notes, Series
2015-2(b) |
700 |
|
May 2045 |
Tower Revenue Notes, Series
2018-2(b) |
750 |
|
July 2048 |
Finance leases and other
obligations |
233 |
|
Various |
Total secured
debt |
$ |
3,302 |
|
|
2016 Revolver |
390 |
|
June 2024 |
2016 Term Loan A |
2,326 |
|
June 2024 |
2019 Commercial Paper
Notes(c) |
0 |
|
N/A |
3.400% Senior Notes |
850 |
|
Feb. 2021 |
2.250% Senior Notes |
700 |
|
Sept. 2021 |
4.875% Senior Notes |
850 |
|
Apr. 2022 |
5.250% Senior Notes |
1,650 |
|
Jan. 2023 |
3.150% Senior Notes |
750 |
|
July 2023 |
3.200% Senior Notes |
750 |
|
Sept. 2024 |
4.450% Senior Notes |
900 |
|
Feb. 2026 |
3.700% Senior Notes |
750 |
|
June 2026 |
4.000% Senior Notes |
500 |
|
Mar. 2027 |
3.650% Senior Notes |
1,000 |
|
Sept. 2027 |
3.800% Senior Notes |
1,000 |
|
Feb. 2028 |
4.300% Senior Notes |
600 |
|
Feb. 2029 |
3.100% Senior Notes |
550 |
|
Nov. 2029 |
4.750% Senior Notes |
350 |
|
May 2047 |
5.200% Senior Notes |
400 |
|
Feb. 2049 |
4.000% Senior Notes |
350 |
|
Nov. 2049 |
Total unsecured
debt |
$ |
14,666 |
|
|
Total net
debt |
$ |
17,643 |
|
|
|
|
|
|
|
(a) The Senior Secured Notes, 2009-1, Class A-2
principal amortizes during the period beginning in September 2019
and ending in August 2029.(b) The Senior Secured Tower Revenue
Notes, Series 2015-1 and 2015-2 have anticipated repayment dates in
2022 and 2025, respectively. The Senior Secured Tower Revenue
Notes, Series 2018-1 and 2018-2 have anticipated repayment dates in
2023 and 2028, respectively.(c) As of September 30, 2019, there
were no outstanding 2019 Commercial Paper Notes. The
maturities of the 2019 Commercial Paper Notes, when outstanding,
may vary but may not exceed 397 days from the date of issue.
Net Debt to Last Quarter Annualized Adjusted EBITDA is
computed as follows:
(dollars in millions) |
For the Three Months Ended September 30, 2019 |
Total face value of debt |
$ |
17,968 |
|
Ending cash, cash equivalents
and restricted cash |
325 |
|
Total Net Debt |
$ |
17,643 |
|
|
|
Adjusted EBITDA for the three
months ended September 30, 2019 |
$ |
882 |
|
Last quarter annualized
Adjusted EBITDA |
3,528 |
|
Net Debt to Last
Quarter Annualized Adjusted EBITDA |
5.0 |
x |
|
|
|
Components of Capital
Expenditures:
|
For the Three Months Ended |
(in millions) |
September 30, 2019 |
|
September 30, 2018 |
|
Towers |
Fiber |
Other |
Total |
|
Towers |
Fiber |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases of land interests |
$ |
18 |
|
$ |
— |
|
$ |
— |
|
$ |
18 |
|
|
$ |
14 |
|
$ |
— |
|
$ |
— |
|
$ |
14 |
|
Communications infrastructure construction and improvements |
120 |
|
371 |
|
— |
|
491 |
|
|
100 |
|
336 |
|
— |
|
436 |
|
Sustaining |
8 |
|
11 |
|
10 |
|
29 |
|
|
9 |
|
12 |
|
5 |
|
27 |
|
Integration |
— |
|
— |
|
2 |
|
2 |
|
|
— |
|
— |
|
1 |
|
1 |
|
Total |
$ |
146 |
|
$ |
382 |
|
$ |
12 |
|
$ |
540 |
|
|
$ |
123 |
|
$ |
348 |
|
$ |
7 |
|
$ |
478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for further discussion of our components
of capital expenditures.
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,
growth, returns, opportunities and tenant and shareholder value
which may be derived from our business, assets, investments,
acquisitions and dividends, (2) our strategy, strategic position,
business model and capabilities, the strength of our business and
fundamentals of our business and industry, (3) our
customers' investment in network improvements and deployment
of cell sites, spectrum and 5G, (4) our long-term prospects and the
trends impacting our business (including growth in mobile data
traffic), (5) the potential benefits and contributions which may be
derived from our acquisitions, including the contribution to or
impact on our financial or operating results, (6) leasing
environment and activity, including growth thereof and the
contribution to our financial or operating results therefrom, (7)
our small cell deployment, (8) our investments in our business and
the potential growth, returns and benefits therefrom, (9) our
dividends (including timing of payment thereof) and our dividend
(including on a per share basis) growth rate, including its driving
factors, and targets, (10) our portfolio of assets, including
demand therefor, strategic position thereof and opportunities
created thereby, (11) assumed conversion of preferred stock and the
impact therefrom, (12) the approval of the proposed merger between
T-Mobile and Sprint and timing of the closing thereof, (13)
contribution to growth from fiber solutions, (14) cash flows,
including growth thereof, (15) tenant non-renewals, including the
impact and timing thereof, (16) capital expenditures, including
sustaining and discretionary capital expenditures, and the timing
thereof, (17) straight-line adjustments, (18) site rental revenues
and estimated growth thereof, (19) site rental cost of
operations, (20) net income (including on a per share basis) and
estimated growth thereof, (21) Adjusted EBITDA, including the
impact of the timing of certain components thereof and estimated
growth thereof, (22) expenses, including interest expense and
amortization of deferred financing costs, (23) FFO (including on a
per share basis) and estimated growth thereof, (24) AFFO (including
on a per share basis) and estimated growth thereof and
corresponding driving factors, (25) Organic Contribution to Site
Rental Revenues, (26) our weighted-average common shares
outstanding (including on a diluted basis) and estimated growth
thereof, (27) services contribution, including the timing
thereof, and (28) 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 communications infrastructure, driven primarily by demand
for data, and we may be adversely affected by any slowdown in such
demand. Additionally, a reduction in the amount or change in
the mix of network investment by our tenants may materially and
adversely affect our business (including reducing demand for our
communications infrastructure or services).
- A substantial portion of our
revenues is derived from a small number of tenants, and the loss,
consolidation or financial instability of any of such tenants may
materially decrease revenues or reduce demand for our
communications infrastructure and services.
- The expansion or 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.
- Our Fiber segment has expanded
rapidly, and the Fiber business model contains certain differences
from our Towers business model, resulting in different operational
risks. If we do not successfully operate our Fiber business
model or identify or manage the related operational risks, such
operations may produce results that are less than anticipated.
- Failure to timely and efficiently
execute on our construction projects could adversely affect our
business.
- 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 our
6.875% 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 or securities convertible into
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 negotiate favorable
rates on our new or renewing tenant contracts.
- New technologies may reduce demand
for our communications infrastructure or negatively impact our
revenues.
- If we fail to retain rights to our
communications infrastructure, including the land interests under
our towers and the right-of-way and other agreements related to our
small cells and fiber solutions, our business may be adversely
affected.
- Our 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 tenants as rapidly or in the manner
projected.
- If we fail to comply with laws or
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 communications infrastructure
are demonstrated to cause negative health effects, potential future
claims could adversely affect our operations, costs or
revenues.
- Certain provisions of our restated
certificate of incorporation, amended and restated by-laws 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 or other unforeseen events that could adversely affect our
operations, business, 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 U.S.
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.
- If we fail to pay scheduled
dividends on our 6.875% 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.
- 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.
- 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. Our
filings with the SEC are available through the SEC website at
www.sec.gov or through our investor relations website at
investor.crowncastle.com. We use our investor relations website to
disclose information about us that may be deemed to be material. We
encourage investors, the media and others interested in us to visit
our investor relations website from time to time to review
up-to-date information or to sign up for e-mail alerts to be
notified when new or updated information is posted on the site.
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)(Amounts in millions, except par values)
|
September 30, 2019 |
|
December 31, 2018 |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
182 |
|
|
$ |
277 |
|
Restricted cash |
138 |
|
|
131 |
|
Receivables, net |
667 |
|
|
501 |
|
Prepaid expenses(a) |
99 |
|
|
172 |
|
Other current assets |
167 |
|
|
148 |
|
Total current assets |
1,253 |
|
|
1,229 |
|
Deferred site rental
receivables |
1,413 |
|
|
1,366 |
|
Property and equipment,
net |
14,416 |
|
|
13,676 |
|
Operating lease right-of-use
assets(a) |
6,112 |
|
|
— |
|
Goodwill |
10,078 |
|
|
10,078 |
|
Other intangible assets,
net(a) |
4,968 |
|
|
5,516 |
|
Long-term prepaid rent and
other assets, net(a) |
104 |
|
|
920 |
|
Total assets |
$ |
38,344 |
|
|
$ |
32,785 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
368 |
|
|
$ |
313 |
|
Accrued interest |
110 |
|
|
148 |
|
Deferred revenues |
525 |
|
|
498 |
|
Other accrued liabilities(a) |
335 |
|
|
351 |
|
Current maturities of debt and other obligations |
100 |
|
|
107 |
|
Current portion of operating lease liabilities(a) |
296 |
|
|
— |
|
Total current liabilities |
1,734 |
|
|
1,417 |
|
Debt and other long-term
obligations |
17,750 |
|
|
16,575 |
|
Operating lease
liabilities(a) |
5,480 |
|
|
— |
|
Other long-term
liabilities(a) |
2,055 |
|
|
2,759 |
|
Total liabilities |
27,019 |
|
|
20,751 |
|
Commitments and
contingencies |
|
|
|
CCIC stockholders'
equity: |
|
|
|
Common stock, $0.01 par value; 600 shares authorized; shares issued
and outstanding: September 30, 2019—416 and December 31,
2018—415 |
4 |
|
|
4 |
|
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par
value; 20 shares authorized; shares issued and outstanding:
September 30, 2019—2 and December 31, 2018—2; aggregate
liquidation value: September 30, 2019—$1,650 and December 31,
2018—$1,650 |
— |
|
|
— |
|
Additional paid-in capital |
17,829 |
|
|
17,767 |
|
Accumulated other comprehensive income (loss) |
(5 |
) |
|
(5 |
) |
Dividends/distributions in excess of earnings |
(6,503 |
) |
|
(5,732 |
) |
Total equity |
11,325 |
|
|
12,034 |
|
Total liabilities and equity |
$ |
38,344 |
|
|
$ |
32,785 |
|
|
|
|
|
|
|
|
|
(a) Effective January 1, 2019, we adopted new
guidance on the recognition, measurement, presentation and
disclosure of leases. The new guidance requires lessees to
recognize a lease liability, initially measured at the present
value of the lease payments for all leases, and a corresponding
right-of-use asset. The accounting for lessors remained largely
unchanged from previous guidance. As a result of the new
guidance for leases, on the effective date, certain amounts related
to our lessee arrangements that were previously reported separately
have been de-recognized and reclassified into "Operating lease
right-of-use assets" on the condensed consolidated balance sheet as
of September 30, 2019.
CROWN CASTLE INTERNATIONAL
CORP.CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS (UNAUDITED)(Amounts in millions, except per
share amounts)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,260 |
|
|
$ |
1,184 |
|
|
$ |
3,718 |
|
|
$ |
3,507 |
|
Services and other |
254 |
|
|
191 |
|
|
700 |
|
|
497 |
|
Net revenues |
1,514 |
|
|
1,375 |
|
|
4,418 |
|
|
4,004 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations (exclusive of depreciation, amortization and
accretion): |
|
|
|
|
|
|
|
Site rental |
369 |
|
|
355 |
|
|
1,095 |
|
|
1,057 |
|
Services and other |
147 |
|
|
119 |
|
|
410 |
|
|
304 |
|
Selling, general and administrative |
150 |
|
|
145 |
|
|
457 |
|
|
418 |
|
Asset write-down charges |
2 |
|
|
8 |
|
|
13 |
|
|
18 |
|
Acquisition and integration costs |
4 |
|
|
4 |
|
|
10 |
|
|
18 |
|
Depreciation, amortization and accretion |
389 |
|
|
385 |
|
|
1,176 |
|
|
1,138 |
|
Total operating expenses |
1,061 |
|
|
1,016 |
|
|
3,161 |
|
|
2,953 |
|
Operating income (loss) |
453 |
|
|
359 |
|
|
1,257 |
|
|
1,051 |
|
Interest expense and
amortization of deferred financing costs |
(173 |
) |
|
(160 |
) |
|
(510 |
) |
|
(478 |
) |
Gains (losses) on retirement
of long-term obligations |
— |
|
|
(32 |
) |
|
(2 |
) |
|
(106 |
) |
Interest income |
2 |
|
|
1 |
|
|
5 |
|
|
4 |
|
Other income (expense) |
(5 |
) |
|
1 |
|
|
(6 |
) |
|
— |
|
Income (loss) before income
taxes |
277 |
|
|
169 |
|
|
744 |
|
|
471 |
|
Benefit (provision) for income
taxes |
(5 |
) |
|
(5 |
) |
|
(15 |
) |
|
(13 |
) |
Net income (loss) |
272 |
|
|
164 |
|
|
729 |
|
|
458 |
|
Dividends on preferred
stock |
(28 |
) |
|
(28 |
) |
|
(85 |
) |
|
(85 |
) |
Net income (loss) attributable
to CCIC common stockholders |
$ |
244 |
|
|
$ |
136 |
|
|
$ |
644 |
|
|
$ |
373 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders,
basic |
$ |
0.59 |
|
|
$ |
0.33 |
|
|
$ |
1.55 |
|
|
$ |
0.90 |
|
Net income (loss) attributable to CCIC common stockholders,
diluted |
$ |
0.58 |
|
|
$ |
0.33 |
|
|
$ |
1.54 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
416 |
|
|
415 |
|
|
416 |
|
|
413 |
|
Diluted |
418 |
|
|
416 |
|
|
418 |
|
|
414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
CROWN CASTLE INTERNATIONAL
CORP.CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS (UNAUDITED)(In millions of dollars)
|
Nine Months Ended September 30, |
|
2019 |
|
2018 |
Cash flows from
operating activities: |
|
|
|
Net income
(loss) |
$ |
729 |
|
|
$ |
458 |
|
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities: |
|
|
|
Depreciation, amortization and accretion |
1,176 |
|
|
1,138 |
|
(Gains) losses on retirement of long-term obligations |
2 |
|
|
106 |
|
Amortization of deferred financing costs and other non-cash
interest |
1 |
|
|
5 |
|
Stock-based compensation expense |
91 |
|
|
79 |
|
Asset write-down charges |
13 |
|
|
18 |
|
Deferred income tax (benefit) provision |
2 |
|
|
2 |
|
Other non-cash adjustments, net |
4 |
|
|
2 |
|
Changes in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
Increase (decrease) in liabilities |
101 |
|
|
144 |
|
Decrease (increase) in assets |
(228 |
) |
|
(177 |
) |
Net cash provided by (used for) operating activities |
1,891 |
|
|
1,775 |
|
Cash flows from
investing activities: |
|
|
|
Payments for acquisitions, net of cash acquired |
(15 |
) |
|
(26 |
) |
Capital expenditures |
(1,538 |
) |
|
(1,241 |
) |
Other investing activities, net |
3 |
|
|
(14 |
) |
Net cash provided by (used for) investing activities |
(1,550 |
) |
|
(1,281 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from issuance of long-term debt |
1,895 |
|
|
2,743 |
|
Principal payments on debt and other long-term obligations |
(59 |
) |
|
(76 |
) |
Purchases and redemptions of long-term debt |
(12 |
) |
|
(2,346 |
) |
Borrowings under revolving credit facility |
1,585 |
|
|
1,290 |
|
Payments under revolving credit facility |
(2,270 |
) |
|
(1,465 |
) |
Payments for financing costs |
(24 |
) |
|
(33 |
) |
Net proceeds from issuance of common stock |
— |
|
|
841 |
|
Purchases of common stock |
(44 |
) |
|
(34 |
) |
Dividends/distributions paid on common stock |
(1,415 |
) |
|
(1,315 |
) |
Dividends paid on preferred stock |
(85 |
) |
|
(85 |
) |
Net cash provided by (used for) financing activities |
(429 |
) |
|
(480 |
) |
Net increase
(decrease) in cash, cash equivalents, and restricted
cash |
(88 |
) |
|
14 |
|
Effect of exchange
rate changes on cash |
— |
|
|
(1 |
) |
Cash, cash equivalents, and restricted cash at beginning of
period |
413 |
|
|
440 |
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
325 |
|
|
$ |
453 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Interest paid |
547 |
|
|
503 |
|
Income taxes paid |
13 |
|
|
15 |
|
|
|
|
|
|
|
CROWN CASTLE INTERNATIONAL
CORP.SEGMENT OPERATING RESULTS
(UNAUDITED)(In millions of dollars)
SEGMENT OPERATING RESULTS |
|
Three Months Ended September 30, 2019 |
|
Three Months Ended September 30, 2018 |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
Segment site rental revenues |
$ |
829 |
|
|
$ |
431 |
|
|
|
|
$ |
1,260 |
|
|
$ |
782 |
|
|
$ |
402 |
|
|
|
|
$ |
1,184 |
|
Segment services and other
revenues |
250 |
|
|
4 |
|
|
|
|
254 |
|
|
189 |
|
|
2 |
|
|
|
|
191 |
|
Segment revenues |
1,079 |
|
|
435 |
|
|
|
|
1,514 |
|
|
971 |
|
|
404 |
|
|
|
|
1,375 |
|
Segment site rental cost of
operations |
218 |
|
|
141 |
|
|
|
|
359 |
|
|
215 |
|
|
131 |
|
|
|
|
346 |
|
Segment services and other
cost of operations |
143 |
|
|
2 |
|
|
|
|
145 |
|
|
115 |
|
|
1 |
|
|
|
|
116 |
|
Segment cost of
operations(a)(b) |
361 |
|
|
143 |
|
|
|
|
504 |
|
|
330 |
|
|
132 |
|
|
|
|
462 |
|
Segment site rental gross
margin(c) |
611 |
|
|
290 |
|
|
|
|
901 |
|
|
567 |
|
|
271 |
|
|
|
|
838 |
|
Segment services and other
gross margin(c) |
107 |
|
|
2 |
|
|
|
|
109 |
|
|
74 |
|
|
1 |
|
|
|
|
75 |
|
Segment selling, general and
administrative expenses(b) |
23 |
|
|
49 |
|
|
|
|
72 |
|
|
28 |
|
|
45 |
|
|
|
|
73 |
|
Segment operating
profit(c) |
695 |
|
|
243 |
|
|
|
|
938 |
|
|
613 |
|
|
227 |
|
|
|
|
840 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
56 |
|
|
56 |
|
|
|
|
|
|
$ |
47 |
|
|
47 |
|
Stock-based compensation
expense |
|
|
|
|
29 |
|
|
29 |
|
|
|
|
|
|
32 |
|
|
32 |
|
Depreciation, amortization and
accretion |
|
|
|
|
389 |
|
|
389 |
|
|
|
|
|
|
385 |
|
|
385 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
173 |
|
|
173 |
|
|
|
|
|
|
160 |
|
|
160 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
14 |
|
|
14 |
|
|
|
|
|
|
47 |
|
|
47 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
277 |
|
|
|
|
|
|
|
|
$ |
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Exclusive of depreciation, amortization and
accretion shown separately.(b) Segment cost of operations excludes
(1) stock-based compensation expense of $7 million for both of the
three months ended September 30, 2019 and 2018, and (2) prepaid
lease purchase price adjustments of $5 million for both of the
three months ended September 30, 2019 and 2018. Selling, general
and administrative expenses exclude stock-based compensation
expense of $22 million and $25 million for the three months ended
September 30, 2019 and 2018, respectively. (c) See "Non-GAAP
Financial Measures, Segment Measures and Other Calculations" herein
for a discussion of our definitions of segment site rental gross
margin, segment services and other gross margin and segment
operating profit.(d) See condensed consolidated statement of
operations for further information.
SEGMENT OPERATING RESULTS |
|
Nine Months Ended September 30, 2019 |
|
Nine Months Ended September 30, 2018 |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
Segment site rental revenues |
$ |
2,451 |
|
|
$ |
1,267 |
|
|
|
|
$ |
3,718 |
|
|
$ |
2,318 |
|
|
$ |
1,189 |
|
|
|
|
$ |
3,507 |
|
Segment services and other
revenues |
689 |
|
|
11 |
|
|
|
|
700 |
|
|
489 |
|
|
8 |
|
|
|
|
497 |
|
Segment revenues |
3,140 |
|
|
1,278 |
|
|
|
|
4,418 |
|
|
2,807 |
|
|
1,197 |
|
|
|
|
4,004 |
|
Segment site rental cost of
operations |
647 |
|
|
418 |
|
|
|
|
1,065 |
|
|
641 |
|
|
388 |
|
|
|
|
1,029 |
|
Segment services and other
cost of operations |
398 |
|
|
6 |
|
|
|
|
404 |
|
|
292 |
|
|
6 |
|
|
|
|
298 |
|
Segment cost of
operations(a)(b) |
1,045 |
|
|
424 |
|
|
|
|
1,469 |
|
|
933 |
|
|
394 |
|
|
|
|
1,327 |
|
Segment site rental gross
margin(c) |
1,804 |
|
|
849 |
|
|
|
|
2,653 |
|
|
1,677 |
|
|
801 |
|
|
|
|
2,478 |
|
Segment services and other
gross margin(c) |
291 |
|
|
5 |
|
|
|
|
296 |
|
|
197 |
|
|
2 |
|
|
|
|
199 |
|
Segment selling, general and
administrative expenses(b) |
73 |
|
|
147 |
|
|
|
|
220 |
|
|
81 |
|
|
131 |
|
|
|
|
212 |
|
Segment operating
profit(c) |
2,022 |
|
|
707 |
|
|
|
|
2,729 |
|
|
1,793 |
|
|
672 |
|
|
|
|
2,465 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
168 |
|
|
168 |
|
|
|
|
|
|
$ |
141 |
|
|
141 |
|
Stock-based compensation
expense |
|
|
|
|
90 |
|
|
90 |
|
|
|
|
|
|
84 |
|
|
84 |
|
Depreciation, amortization and
accretion |
|
|
|
|
1,176 |
|
|
1,176 |
|
|
|
|
|
|
1,138 |
|
|
1,138 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
510 |
|
|
510 |
|
|
|
|
|
|
478 |
|
|
478 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
41 |
|
|
41 |
|
|
|
|
|
|
153 |
|
|
153 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
744 |
|
|
|
|
|
|
|
|
$ |
471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Exclusive of depreciation, amortization and
accretion shown separately.(b) Segment cost of operations excludes
(1) stock-based compensation expense of $21 million and $19 million
for the nine months ended September 30, 2019 and 2018,
respectively, and (2) prepaid lease purchase price adjustments of
$15 million for both of the nine months ended September 30, 2019
and 2018. Selling, general and administrative expenses exclude
stock-based compensation expense of $69 million and $65 million for
the nine months ended September 30, 2019 and 2018,
respectively. (c) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" herein for a discussion of our
definitions of segment site rental gross margin, segment services
and other gross margin and segment operating profit.(d) See
condensed consolidated statement of operations for further
information.
Contacts: Dan Schlanger, CFOBen Lowe, VP & TreasurerCrown
Castle International Corp.713-570-3050
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