Crown Castle International Corp. (NYSE: CCI) ("Crown Castle") today
reported results for the third quarter ended September 30,
2020, updated its outlook for full year 2020 and issued its full
year 2021 outlook as reflected in the table below.
(in millions, except per share amounts) |
Midpoint of CurrentFull Year2021 Outlook(c) |
Midpoint of CurrentFull Year2020 Outlook(c) |
Full Year2019 Actual |
Full Year 2020Outlook to Full Year2021 Outlook% Change |
Full Year 2019Actual to Full Year2020 Outlook% Change |
Site rental revenues |
$5,555 |
$5,317 |
$5,093 |
+4% |
+4% |
Net income (loss) |
$997 |
$819 |
$860 |
+22% |
-5% |
Net income (loss) per
share—diluted(a) |
$2.30 |
$1.79 |
$1.79 |
+28% |
—% |
Adjusted EBITDA(b) |
$3,607 |
$3,419 |
$3,299 |
+5% |
+4% |
AFFO(a)(b) |
$2,906 |
$2,587 |
$2,371 |
+12% |
+9% |
AFFO per share(a)(b) |
$6.69 |
$6.09 |
$5.68 |
+10% |
+7% |
(a) Attributable to CCIC common stockholders.(b)
See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information and reconciliation of this
non-GAAP financial measure to net income (loss).(c) As issued on
October 21, 2020.
"We delivered solid results in the third quarter
and remain on track to generate growth in AFFO per share for 2020
that is consistent with our long-term growth target of 7% to 8% per
year," stated Jay Brown, Crown Castle’s Chief Executive Officer.
"I'm so proud of how our employees navigated through a pandemic and
a significant carrier consolidation in the wireless market this
year. We have a long history of consistently delivering compelling
growth through various market cycles and disruptions, highlighting
the strength of our business model and the compelling value
creation opportunity we believe our strategy provides to
shareholders.
"As we look ahead, we have increased our
annualized common stock dividend by 11% to $5.32 per share. With
the strong demand we see for our Towers and Fiber infrastructure as
our customers deploy additional cell sites and spectrum in response
to the rapid growth in mobile data traffic, we expect approximately
6% growth in Organic Contribution to Site Rental Revenue across
both our Towers and Fiber segments in 2021, supporting an expected
acceleration in AFFO per share growth to approximately 10%. Our
unique portfolio of assets positions us to benefit from what we
expect will be a decade-long investment cycle as our customers
deploy 5G, which we believe will start in earnest in 2021.
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. Based on the
expected growth in data traffic and wireless carrier network
investment, we believe 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."
RESULTS FOR THE QUARTERThe
table below sets forth select financial results for the quarter
ended September 30, 2020 and September 30, 2019.
(in millions, except per share amounts) |
Q3 2020 |
Q3 2019 |
Change |
% Change |
|
|
(As Restated)(c) |
|
|
Site rental revenues |
$1,339 |
$1,287 |
+$52 |
+4% |
Net income (loss) |
$163 |
$242 |
-$79 |
-33% |
Net income (loss) per
share—diluted(a) |
$0.38 |
$0.51 |
-$0.13 |
-25% |
Adjusted EBITDA(b) |
$883 |
$853 |
+$30 |
+4% |
AFFO(a)(b) |
$668 |
$617 |
+$51 |
+8% |
AFFO per share(a)(b) |
$1.56 |
$1.47 |
+$0.09 |
+6% |
(a) Attributable to CCIC common stockholders.(b)
See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information and reconciliation of this
non-GAAP financial measure to net income (loss).(c) See our Annual
Report on Form 10-K for the year ended December 31, 2019 for
further information.
HIGHLIGHTS FROM THE QUARTER
- Site rental
revenues. Site rental revenues grew 4.0%, or $52 million,
from third quarter 2019 to third quarter 2020, inclusive of
approximately $70 million in Organic Contribution to Site Rental
Revenues and a $18 million decrease in straight-lined revenues. The
$70 million in Organic Contribution to Site Rental Revenues
represents approximately 5.5% growth, comprised of approximately
9.1% growth from new leasing activity and contracted tenant
escalations, net of approximately 3.6% from tenant
non-renewals.
- Net income. Net
income for the third quarter 2020 was $163 million compared to $242
million during the third quarter of 2019 and was impacted by the
retirement of $2.4 billion of senior unsecured notes during July
2020, which resulted in a $95 million loss on the retirement of
long-term obligations.
- Capital
Expenditures. Capital expenditures during the quarter were
$377 million, comprised of $20 million of sustaining capital
expenditures and $357 million of discretionary capital
expenditures. Discretionary capital expenditures during the quarter
primarily included approximately $274 million attributable to Fiber
and approximately $73 million attributable to Towers.
- Common
stock dividend. During the quarter, Crown Castle
paid common stock dividends of approximately $518 million in the
aggregate, or $1.20 per common share, an increase of approximately
7% on a per share basis compared to the same period a year
ago.
- Financing
Activity. In July, Crown Castle utilized
net proceeds from a June 2020 senior unsecured notes offering to
retire an aggregate of $2.4 billion of senior unsecured notes. Also
during the quarter, all outstanding shares of Crown Castle's 6.875%
Mandatory Convertible Preferred Stock were converted into
approximately 14.5 million shares of Crown Castle common stock.
These conversions increased the diluted weighted average common
shares outstanding for 2020 by approximately 6 million shares and
reduced the annual preferred stock dividends paid by approximately
$28 million when compared to full year 2019.
"We believe we can deliver on our long-term
annual dividend growth target of 7% to 8% while at the same time
making investments in our business that will support future
growth," stated Dan Schlanger, Crown Castle's Chief Financial
Officer. "Looking to 2021, the portion of our small cell backlog we
expect to put on air has a higher proportion of collocation nodes
relative to recent years, reducing the capital intensity in that
business. Due to this reduced capital intensity, combined with the
completion of several large fiber expansion projects in 2020, we
expect our discretionary capital expenditures to be approximately
$400 million lower in 2021 when compared to 2019 while delivering
AFFO per share growth above our long-term target. We anticipate the
combination of lower capital expenditures and higher cash flow
growth will allow us to fund our discretionary capital budget next
year with free cash flow and incremental debt capacity, consistent
with our Investment Grade credit profile."
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 SEC.
The following table sets forth Crown Castle's
current Outlook for full year 2020 and full year 2021.
(in millions) |
Full Year 2020 |
Full Year 2021 |
Site rental revenues |
$5,307 |
to |
$5,327 |
$5,532 |
to |
$5,577 |
Site rental cost of operations(a) |
$1,485 |
to |
$1,505 |
$1,538 |
to |
$1,583 |
Net income (loss) |
$799 |
to |
$839 |
$957 |
to |
$1,037 |
Adjusted EBITDA(b) |
$3,409 |
to |
$3,429 |
$3,584 |
to |
$3,629 |
Interest expense and
amortization of deferred financing costs(c) |
$683 |
to |
$693 |
$663 |
to |
$708 |
FFO(b)(d) |
$2,300 |
to |
$2,320 |
$2,603 |
to |
$2,648 |
AFFO(b)(d) |
$2,577 |
to |
$2,597 |
$2,883 |
to |
$2,928 |
AFFO per share(b)(d) |
$6.07 |
to |
$6.11 |
$6.64 |
to |
$6.74 |
(a) Exclusive of depreciation, amortization and
accretion.(b) See "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" for further information and reconciliation
of this non-GAAP financial measure to net income (loss).(c) See
reconciliation of "components of current outlook for interest
expense and amortization of deferred financing costs" for a
discussion of non-cash interest expense.(d) Attributable to CCIC
common stockholders.
Full Year 2020 and 2021 OutlookThe table below
compares the current full year 2020 Outlook to both the prior full
year 2020 Outlook issued on July 29, 2020 and the current 2021
Outlook for select metrics at the midpoints.
Midpoint of FY 2021 Outlook and FY 2020 Outlook Comparisons |
(in millions, except per share amounts) |
CurrentFull Year2021 Outlook |
CurrentFull Year2020 Outlook |
Change |
% Change |
PreviousFull Year2020 Outlook |
Current 2020Compared to Previous2020 Outlook |
Site rental revenues |
$5,555 |
$5,317 |
+$238 |
+4% |
$5,360 |
-$43 |
Net income (loss) |
$997 |
$819 |
+$178 |
+22% |
$943 |
-$124 |
Net income (loss) per
share—diluted(a) |
$2.30 |
$1.79 |
+$0.51 |
+28% |
$2.09 |
-$0.30 |
Adjusted EBITDA(b) |
$3,607 |
$3,419 |
+$188 |
+5% |
$3,502 |
-$83 |
AFFO(a)(b) |
$2,906 |
$2,587 |
+$319 |
+12% |
$2,595 |
-$8 |
AFFO per share(a)(b) |
$6.69 |
$6.09 |
+$0.60 |
+10% |
$6.12 |
-$0.03 |
(a) Attributable to CCIC common stockholders.(b)
See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information and reconciliation of this
non-GAAP financial measure to net income (loss).
- The reduction to
the 2020 Outlook primarily reflects an expected shift in the timing
of Towers activity from the second half of 2020 to the first half
of 2021. The change in the timing of Towers activity negatively
impacts the expected Organic Contribution to Site Rental Revenues
by approximately $20 million and services contribution from towers
by approximately $50 million. In addition, straight-lined revenues
from Towers for full year 2020 are expected to be approximately $20
million lower than previously expected, due to a combination of the
timing of Towers activity as well as fewer lease extensions than
previously forecasted.
- These changes are offset by
approximately $10 million in lower expenses, approximately $30
million in lower interest expense and approximately $25 million in
lower sustaining capital expenditures as compared to our prior 2020
Outlook.
- The chart below reconciles the
components of expected growth in site rental revenues from 2020 to
2021 of $215 million to $260 million, inclusive of expected Organic
Contribution to Site Rental Revenues during 2021 of $295 million to
$335 million, or approximately 6%.Chart
1: https://www.globenewswire.com/NewsRoom/AttachmentNg/a44e7d91-5f00-438d-adfb-18a47577b833
- New leasing activity is expected to
contribute $375 million to $405 million to 2021 Organic
Contribution to Site Rental Revenues, consisting of new leasing
activity from towers of $150 million to $160 million (compared to
approximately $150 million expected in full year 2020), small cells
of $65 million to $75 million (compared to approximately $70
million expected in full year 2020), and fiber solutions of $160
million to $170 million (compared to approximately $160 million
expected in full year 2020).
- In addition, discretionary capital
expenditures are expected to be approximately $1.5 billion in 2021,
which compares to an expected $1.6 billion in 2020 and $1.9 billion
in 2019. Prepaid rent additions are expected to be approximately
$550 million in 2021, which compares to approximately $450 million
expected in full year 2020 and approximately $650 million in
2019.
- The expected decrease in
discretionary capital expenditures of approximately $400 million
from 2019 to 2021 primarily reflects an expected decrease in small
cell capital expenditures supporting similar revenue growth due to
an expected increase in collocation activity, and the expected
completion of several large fiber expansion projects by the end of
2020 that resulted from prior acquisitions.
- The chart below reconciles the
components of expected growth in AFFO from 2020 to 2021 of $300
million to $345 million.Chart
2: https://www.globenewswire.com/NewsRoom/AttachmentNg/90382e94-ad47-47ab-8292-81511796c74a
- The expected contribution to 2021
AFFO growth of $60 million to $90 million from Other items is
primarily tied to the conversions of preferred stock that occurred
during the third quarter, which will reduce annual preferred stock
dividends paid by approximately $85 million when compared to full
year 2020.
- The increase in services
contribution is a result of the expected increase in tower activity
in 2021.
- The expected increase in expenses
primarily reflects the combination of typical escalations and cost
of living increases on the existing base of expenses, and
incremental direct costs associated with Fiber revenue growth.
- Additional information is available
in Crown Castle's quarterly Supplemental Information Package posted
in the Investors section of our website.
DIVIDEND INCREASE
ANNOUNCEMENTCrown Castle's Board of Directors has declared
a quarterly cash dividend of $1.33 per common share, representing
an increase of approximately 11% over the previous quarterly
dividend of $1.20 per share. The quarterly dividend will be payable
on December 31, 2020 to common stockholders of record at the close
of business on December 15, 2020. Future dividends are subject to
the approval of Crown Castle's Board of Directors.
BOARD OF DIRECTORS
APPOINTMENTSIn a separate press release today, Crown
Castle announced that, as part of its previously announced Board
refreshment plan, its Board of Directors has appointed Tammy K.
Jones and Matthew Thornton, III as directors, effective November 6,
2020.
CONFERENCE CALL DETAILSCrown
Castle has scheduled a conference call for Thursday, October 22,
2020, at 10:30 a.m. Eastern time to discuss its third quarter 2020
results. The conference call may be accessed by dialing
800-458-4148 and asking for the Crown Castle call (access code
3114175) 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 22,
2020, through 1:30 p.m. Eastern time on Wednesday, January 20,
2021, and may be accessed by dialing 888-203-1112 and using access
code 3114175. An audio archive will also be available on Crown
Castle'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
approximately 80,000 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 (in periods
where applicable)) 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
(in periods where applicable), 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 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 relates 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 Nine Months Ended |
|
For the Twelve Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
December 31, 2019 |
(in millions) |
|
|
(As Restated)(d) |
|
|
|
(As Restated)(d) |
|
|
Net income (loss) |
$ |
163 |
|
|
$ |
242 |
|
|
$ |
548 |
|
|
$ |
652 |
|
|
$ |
860 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
|
|
Asset write-down charges |
3 |
|
|
2 |
|
|
10 |
|
|
13 |
|
|
19 |
|
Acquisition and integration costs |
2 |
|
|
4 |
|
|
9 |
|
|
10 |
|
|
13 |
|
Depreciation, amortization and accretion |
406 |
|
|
388 |
|
|
1,207 |
|
|
1,175 |
|
|
1,572 |
|
Amortization of prepaid lease purchase price adjustments |
5 |
|
|
5 |
|
|
14 |
|
|
15 |
|
|
20 |
|
Interest expense and amortization of deferred financing
costs(a) |
168 |
|
|
173 |
|
|
521 |
|
|
510 |
|
|
683 |
|
(Gains) losses on retirement of long-term obligations |
95 |
|
|
— |
|
|
95 |
|
|
2 |
|
|
2 |
|
Interest income |
— |
|
|
(2 |
) |
|
(2 |
) |
|
(5 |
) |
|
(6 |
) |
Other (income) expense |
3 |
|
|
5 |
|
|
3 |
|
|
6 |
|
|
(1 |
) |
(Benefit) provision for income taxes |
5 |
|
|
5 |
|
|
16 |
|
|
15 |
|
|
21 |
|
Stock-based compensation expense |
33 |
|
|
29 |
|
|
106 |
|
|
90 |
|
|
116 |
|
Adjusted EBITDA(b)(c) |
$ |
883 |
|
|
$ |
853 |
|
|
$ |
2,527 |
|
|
$ |
2,483 |
|
|
$ |
3,299 |
|
|
Reconciliation of Current Outlook for Adjusted
EBITDA:
|
Full Year 2020 |
|
Full Year 2021 |
(in millions) |
Outlook |
|
Outlook |
Net income (loss) |
$799 |
to |
$839 |
|
$957 |
to |
$1,037 |
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset write-down charges |
$10 |
to |
$20 |
|
$15 |
to |
$25 |
Acquisition and integration costs |
$7 |
to |
$17 |
|
$0 |
to |
$8 |
Depreciation, amortization and accretion |
$1,589 |
to |
$1,639 |
|
$1,615 |
to |
$1,710 |
Amortization of prepaid lease purchase price adjustments |
$18 |
to |
$20 |
|
$17 |
to |
$19 |
Interest expense and amortization of deferred financing
costs(a) |
$683 |
to |
$693 |
|
$663 |
to |
$708 |
(Gains) losses on retirement of long-term obligations |
$95 |
to |
$95 |
|
$0 |
to |
$100 |
Interest income |
$(4) |
to |
$0 |
|
$(3) |
to |
$0 |
Other (income) expense |
$2 |
to |
$4 |
|
$(1) |
to |
$1 |
(Benefit) provision for income taxes |
$17 |
to |
$25 |
|
$18 |
to |
$26 |
Stock-based compensation expense |
$134 |
to |
$138 |
|
$145 |
to |
$149 |
Adjusted EBITDA(b)(c) |
$3,409 |
to |
$3,429 |
|
$3,584 |
to |
$3,629 |
|
(a) See reconciliation of "components of current
outlook for interest expense and amortization of deferred financing
costs" for a discussion of non-cash interest expense.(b) See
"Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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.(d)
See our Annual Report on Form 10-K for the year ended December 31,
2019 for further information.
Reconciliation of Historical FFO and
AFFO:
|
For the Three Months Ended |
|
For the Nine Months Ended |
|
For the Twelve Months Ended |
|
September 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
December 31, 2019 |
(in millions, except per share
amounts) |
|
|
(As Restated)(f) |
|
|
|
(As Restated)(f) |
|
|
Net income (loss) |
$ |
163 |
|
|
$ |
242 |
|
|
$ |
548 |
|
|
$ |
652 |
|
|
$ |
860 |
|
Real estate related
depreciation, amortization and accretion |
393 |
|
|
374 |
|
|
1,167 |
|
|
1,133 |
|
|
1,517 |
|
Asset write-down charges |
3 |
|
|
2 |
|
|
10 |
|
|
13 |
|
|
19 |
|
Dividends/distributions on
preferred stock |
(28 |
) |
|
(28 |
) |
|
(85 |
) |
|
(85 |
) |
|
(113 |
) |
FFO(a)(b)(c)(d) |
$ |
531 |
|
|
$ |
593 |
|
|
$ |
1,640 |
|
|
$ |
1,714 |
|
|
$ |
2,284 |
|
Weighted-average common shares outstanding—diluted(e) |
429 |
|
|
418 |
|
|
422 |
|
|
418 |
|
|
418 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
1.24 |
|
|
$ |
1.42 |
|
|
$ |
3.89 |
|
|
$ |
4.11 |
|
|
$ |
5.47 |
|
|
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
531 |
|
|
$ |
593 |
|
|
$ |
1,640 |
|
|
$ |
1,714 |
|
|
$ |
2,284 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
|
|
Straight-lined revenue |
(4 |
) |
|
(22 |
) |
|
(27 |
) |
|
(62 |
) |
|
(80 |
) |
Straight-lined expense |
21 |
|
|
24 |
|
|
61 |
|
|
70 |
|
|
93 |
|
Stock-based compensation expense |
33 |
|
|
29 |
|
|
106 |
|
|
90 |
|
|
116 |
|
Non-cash portion of tax provision |
(7 |
) |
|
1 |
|
|
3 |
|
|
2 |
|
|
5 |
|
Non-real estate related depreciation, amortization and
accretion |
13 |
|
|
14 |
|
|
40 |
|
|
42 |
|
|
55 |
|
Amortization of non-cash interest expense |
1 |
|
|
— |
|
|
4 |
|
|
1 |
|
|
1 |
|
Other (income) expense |
3 |
|
|
5 |
|
|
3 |
|
|
6 |
|
|
(1 |
) |
(Gains) losses on retirement of long-term obligations |
95 |
|
|
— |
|
|
95 |
|
|
2 |
|
|
2 |
|
Acquisition and integration costs |
2 |
|
|
4 |
|
|
9 |
|
|
10 |
|
|
13 |
|
Sustaining capital expenditures |
(20 |
) |
|
(29 |
) |
|
(64 |
) |
|
(80 |
) |
|
(117 |
) |
AFFO(a)(b)(c)(d) |
$ |
668 |
|
|
$ |
617 |
|
|
$ |
1,870 |
|
|
$ |
1,794 |
|
|
$ |
2,371 |
|
Weighted-average common shares outstanding—diluted(e) |
429 |
|
|
418 |
|
|
422 |
|
|
418 |
|
|
418 |
|
AFFO per
share(a)(b)(c)(d)(e) |
$ |
1.56 |
|
|
$ |
1.47 |
|
|
$ |
4.43 |
|
|
$ |
4.29 |
|
|
$ |
5.68 |
|
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" 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 prior
to those ended September 30, 2020, the diluted weighted-average
common shares outstanding does not include any assumed conversions
of preferred stock in the share count.(f) See our Annual Report on
Form 10-K for the year ended December 31, 2019 for further
information.
Reconciliation of Current Outlook for
FFO and AFFO:
|
Full Year 2020 |
|
Full Year 2021 |
(in millions except per share
amounts) |
Outlook |
|
Outlook |
Net income (loss) |
$799 |
to |
$839 |
|
$957 |
to |
$1,037 |
Real estate related
depreciation, amortization and accretion |
$1,541 |
to |
$1,581 |
|
$1,569 |
to |
$1,649 |
Asset write-down charges |
$10 |
to |
$20 |
|
$15 |
to |
$25 |
Dividends/distributions on
preferred stock |
$(85) |
to |
$(85) |
|
$0 |
to |
$0 |
FFO(a)(b)(c)(d) |
$2,300 |
to |
$2,320 |
|
$2,603 |
to |
$2,648 |
Weighted-average common shares outstanding—diluted(e) |
|
425 |
|
|
|
434 |
|
FFO per share(a)(b)(c)(d)(e) |
$5.41 |
to |
$5.46 |
|
$6.00 |
to |
$6.10 |
|
|
|
|
|
|
|
|
FFO (from above) |
$2,300 |
to |
$2,320 |
|
$2,603 |
to |
$2,648 |
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
$(27) |
to |
$(17) |
|
$38 |
to |
$58 |
Straight-lined expense |
$76 |
to |
$86 |
|
$58 |
to |
$78 |
Stock-based compensation expense |
$134 |
to |
$138 |
|
$145 |
to |
$149 |
Non-cash portion of tax provision |
$(3) |
to |
$7 |
|
$(7) |
to |
$8 |
Non-real estate related depreciation, amortization and
accretion |
$48 |
to |
$58 |
|
$46 |
to |
$61 |
Amortization of non-cash interest expense |
$1 |
to |
$11 |
|
$4 |
to |
$14 |
Other (income) expense |
$2 |
to |
$4 |
|
$(1) |
to |
$1 |
(Gains) losses on retirement of long-term obligations |
$95 |
to |
$95 |
|
$0 |
to |
$100 |
Acquisition and integration costs |
$7 |
to |
$17 |
|
$0 |
to |
$8 |
Sustaining capital expenditures |
$(93) |
to |
$(83) |
|
$(104) |
to |
$(94) |
AFFO(a)(b)(c)(d) |
$2,577 |
to |
$2,597 |
|
$2,883 |
to |
$2,928 |
Weighted-average common shares outstanding—diluted(e) |
|
425 |
|
|
|
434 |
|
AFFO per
share(a)(b)(c)(d)(e) |
$6.07 |
to |
$6.11 |
|
$6.64 |
to |
$6.74 |
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" 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
2020 Outlook is based on the diluted common shares outstanding as
of September 30, 2020 and is inclusive of the conversions of
preferred stock that occurred in the third quarter of 2020, which
resulted 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 full year 2019 actual
results.
For Comparative Purposes - Reconciliation of Previous
Outlook for Adjusted EBITDA:
|
Previously Issued |
|
Full Year 2020 |
(in millions) |
Outlook |
Net income (loss) |
$903 |
to |
$983 |
Adjustments to increase
(decrease) net income (loss): |
|
|
|
Asset write-down charges |
$20 |
to |
$30 |
Acquisition and integration costs |
$7 |
to |
$17 |
Depreciation, amortization and accretion |
$1,503 |
to |
$1,598 |
Amortization of prepaid lease purchase price adjustments |
$18 |
to |
$20 |
Interest expense and amortization of deferred financing costs |
$691 |
to |
$736 |
(Gains) losses on retirement of long-term obligations |
$95 |
to |
$95 |
Interest income |
$(7) |
to |
$(3) |
Other (income) expense |
$(1) |
to |
$1 |
(Benefit) provision for income taxes |
$16 |
to |
$24 |
Stock-based compensation expense |
$126 |
to |
$130 |
Adjusted EBITDA(a)(b) |
$3,479 |
to |
$3,524 |
|
(a) See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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 2020 |
(in millions, except per share
amounts) |
Outlook |
Net income (loss) |
$903 |
to |
$983 |
Real estate related
depreciation, amortization and accretion |
$1,454 |
to |
$1,534 |
Asset write-down charges |
$20 |
to |
$30 |
Dividends/distributions on
preferred stock |
$(85) |
to |
$(85) |
FFO(a)(b)(c)(d) |
$2,354 |
to |
$2,399 |
Weighted-average common shares outstanding—diluted(e) |
|
424 |
|
FFO per share(a)(b)(c)(d)(e) |
$5.55 |
to |
$5.65 |
|
|
|
|
FFO (from above) |
$2,354 |
to |
$2,399 |
Adjustments to increase
(decrease) FFO: |
|
|
|
Straight-lined revenue |
$(53) |
to |
$(33) |
Straight-lined expense |
$70 |
to |
$90 |
Stock-based compensation expense |
$126 |
to |
$130 |
Non-cash portion of tax provision |
$(6) |
to |
$9 |
Non-real estate related depreciation, amortization and
accretion |
$49 |
to |
$64 |
Amortization of non-cash interest expense |
$(4) |
to |
$6 |
Other (income) expense |
$(1) |
to |
$1 |
(Gains) losses on retirement of long-term obligations |
$95 |
to |
$95 |
Acquisition and integration costs |
$7 |
to |
$17 |
Sustaining capital expenditures |
$(123) |
to |
$(103) |
AFFO(a)(b)(c)(d) |
$2,572 |
to |
$2,617 |
Weighted-average common shares outstanding—diluted(e) |
|
424 |
|
AFFO per
share(a)(b)(c)(d)(e) |
$6.06 |
to |
$6.17 |
|
(a) See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" 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
2020 Outlook is based on the diluted common shares outstanding as
of September 30, 2020 and is inclusive of the conversions of
preferred stock that occurred in the third quarter of 2020, which
resulted 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 full year 2019 actual
results.The components of changes in site rental revenues
for the quarters ended September 30, 2020 and 2019 are as
follows:
|
Three Months Ended September 30, |
|
2020 |
|
2019 |
(dollars in millions) |
|
|
|
(As Restated)(g) |
Components of changes in site
rental revenues(a): |
|
|
|
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$ |
|
1,265 |
|
|
$ |
1,188 |
|
|
|
|
|
|
|
New leasing activity(b)(c) |
93 |
|
|
99 |
|
Escalators |
23 |
|
|
22 |
|
Non-renewals |
(46 |
) |
|
(44 |
) |
Organic Contribution to Site Rental Revenues(d) |
70 |
|
|
77 |
|
Impact from straight-lined revenues associated with fixed
escalators |
4 |
|
|
22 |
|
Acquisitions(e) |
— |
|
|
— |
|
Other |
— |
|
|
— |
|
Total GAAP site rental
revenues |
$ |
1,339 |
|
|
$ |
1,287 |
|
|
|
|
|
|
|
Year-over-year changes
in revenue: |
|
|
|
|
|
Reported GAAP site rental
revenues |
4.0 |
% |
|
|
|
Organic Contribution to Site
Rental Revenues(d)(f) |
5.5 |
% |
|
|
|
|
|
|
|
|
|
The components of the changes in site rental revenues
for the years ending December 31, 2020 and 2021 are forecasted as
follows:
(dollars in millions) |
Previously Issued Full Year 2020 Outlook |
|
Current Full Year 2020 Outlook |
|
Current Full Year 2021 Outlook(j) |
Components of changes in site
rental revenues(a): |
|
|
|
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$5,012 |
|
$5,012 |
|
$5,295 |
|
|
|
|
|
|
New leasing activity(b)(c) |
395-425 |
|
375-385 |
|
375-405 |
Escalators |
90-100 |
|
90-100 |
|
90-100 |
Non-renewals |
(195)-(175) |
|
(185)-(175) |
|
(180)-(160) |
Organic Contribution to Site Rental Revenues(d) |
295-335 |
|
285-295 |
|
295-335 |
Impact from full year straight-lined revenues associated with fixed
escalators |
33-53 |
|
17-27 |
|
(38)-(58) |
Acquisitions(e) |
— |
|
<5 |
|
<5 |
Other |
— |
|
— |
|
— |
Total GAAP site rental
revenues |
$5,337-$5,382 |
|
$5,307-$5,327 |
|
$5,532-$5,577 |
|
|
|
|
|
|
Year-over-year changes
in revenue: |
|
|
|
|
|
Reported GAAP site rental
revenues(h) |
5.1% |
|
4.4% |
|
4.5% |
Organic Contribution to Site
Rental Revenues(d)(h)(i) |
6.3% |
|
5.8% |
|
5.9% |
|
|
|
|
|
|
(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 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.(g) See our Annual Report on Form 10-K for the year
ended December 31, 2019 for further information.(h) Calculated
based on midpoint of respective full year Outlook.(i) 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.(j) Prior year site rental revenues
exclusive of straight-lined revenues associated with fixed
escalators is calculated based on midpoint of current full year
2020 Outlook.
Components of Historical Interest
Expense and Amortization of Deferred Financing Costs:
|
|
|
For the Three Months Ended |
(in millions) |
September 30, 2020 |
|
September 30, 2019 |
Interest expense on debt
obligations |
$ |
167 |
|
|
$ |
173 |
|
Amortization of deferred
financing costs and adjustments on long-term debt, net |
|
6 |
|
|
|
5 |
|
Capitalized interest |
|
(5 |
) |
|
|
(5 |
) |
Interest expense and
amortization of deferred financing costs |
$ |
168 |
|
|
$ |
173 |
|
|
Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing
Costs:
|
|
|
|
|
|
|
|
|
Full Year 2020 |
|
Full Year 2021 |
(in millions) |
Outlook |
|
Outlook |
Interest expense on debt
obligations |
$678 |
to |
$688 |
|
$668 |
to |
$688 |
Amortization of deferred
financing costs and adjustments on long-term debt, net |
$21 |
to |
$26 |
|
$21 |
to |
$26 |
Capitalized interest |
$(20) |
to |
$(15) |
|
$(17) |
to |
$(12) |
Interest expense and
amortization of deferred financing costs |
$683 |
to |
$693 |
|
$663 |
to |
$708 |
|
Debt balances and maturity dates as of
September 30, 2020 are as follows:
|
(in millions) |
Face Value |
|
Final Maturity |
Cash, cash equivalents
and restricted cash |
$ |
421 |
|
|
|
|
|
|
|
3.849% Secured Notes |
|
1,000 |
|
Apr. 2023 |
Secured Notes, Series 2009-1,
Class A-2(a) |
|
62 |
|
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 |
|
228 |
|
Various |
Total secured debt |
$ |
3,290 |
|
|
2016 Revolver |
|
520 |
|
June 2024 |
2016 Term Loan A |
|
2,268 |
|
June 2024 |
Commercial Paper Notes(c) |
|
75 |
|
Oct. 2020 |
5.250% Senior Notes |
|
1,650 |
|
Jan. 2023 |
3.150% Senior Notes |
|
750 |
|
July 2023 |
3.200% Senior Notes |
|
750 |
|
Sept. 2024 |
1.350% Senior Notes |
|
500 |
|
July 2025 |
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 |
3.300% Senior Notes |
|
750 |
|
July 2030 |
2.250% Senior Notes |
|
1,100 |
|
Jan. 2031 |
4.750% Senior Notes |
|
350 |
|
May 2047 |
5.200% Senior Notes |
|
400 |
|
Feb. 2049 |
4.000% Senior Notes |
|
350 |
|
Nov. 2049 |
4.150% Senior Notes |
|
500 |
|
July 2050 |
3.250% Senior Notes |
|
900 |
|
Jan. 2051 |
Total unsecured debt |
$ |
16,163 |
|
|
Total net debt |
$ |
19,032 |
|
|
|
Net Debt to Last Quarter Annualized Adjusted EBITDA is
computed as follows:
|
(dollars in millions) |
For the Three Months Ended September 30, 2020 |
Total face value of debt |
$ |
19,453 |
|
Less: Ending cash, cash
equivalents and restricted cash |
|
421 |
|
Total Net Debt |
$ |
|
|
19,032 |
|
|
|
|
|
Adjusted EBITDA for the three
months ended September 30, 2020 |
$ |
|
|
883 |
|
Last quarter annualized
Adjusted EBITDA |
|
3,532 |
|
Net Debt to Last
Quarter Annualized Adjusted EBITDA |
|
5.4 |
x |
|
|
|
|
(a) The Senior Secured Notes, 2009-1, Class A-2
principal amortizes over a period 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) The
maturities of the Commercial Paper Notes, when outstanding, may
vary but may not exceed 397 days from the date of issue.
Components of Capital
Expenditures:
|
|
|
For the Three Months Ended |
(in millions) |
September 30, 2020 |
|
September 30, 2019 |
|
Towers |
Fiber |
Other |
Total |
|
Towers |
Fiber |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases of land interests |
$ |
12 |
|
$ |
— |
|
$ |
— |
|
$ |
12 |
|
|
$ |
18 |
|
$ |
— |
|
$ |
— |
|
$ |
18 |
|
Communications infrastructure improvements and other capital
projects |
61 |
|
274 |
|
10 |
|
345 |
|
|
119 |
|
371 |
|
— |
|
490 |
|
Sustaining |
3 |
|
13 |
|
4 |
|
20 |
|
|
8 |
|
11 |
|
10 |
|
29 |
|
Integration |
— |
|
— |
|
— |
|
— |
|
|
— |
|
— |
|
2 |
|
2 |
|
Total |
$ |
76 |
|
$ |
287 |
|
$ |
14 |
|
$ |
377 |
|
|
$ |
145 |
|
$ |
382 |
|
$ |
12 |
|
$ |
539 |
|
|
Note: See "Non-GAAP Financial Measures, Segment
Measures and Other Calculations" for further discussion of our
components of capital expenditures.
Cautionary Language Regarding
Forward-Looking Statements
This news release contains forward-looking
statements and information that are based on our management's
current expectations as of the date of this news release.
Statements that are not historical facts are hereby identified as
forward-looking statements. In addition, words such as "estimate,"
"see," "anticipate," "project," "plan," "intend," "believe,"
"expect," "likely," "predicted," "positioned," "continue,"
"target," and any variations of these words and similar expressions
are intended to identify forward-looking statements. Such
statements include our full year 2020 and 2021 Outlook and plans,
projections, and estimates regarding (1) potential benefits,
growth, returns, capabilities, opportunities and shareholder value
which may be derived from our business, assets, investments,
acquisitions and dividends, (2) our business, strategy, strategic
position, business model and capabilities and the strength thereof,
(3) industry fundamentals and driving factors for improvements in
such fundamentals, (4) our customers' investment, including
investment cycles and the timing thereof, in network improvements
(including 5G), the trends driving such improvements and
opportunities and demand for our assets created thereby, (5) our
long-and short-term prospects and the trends, events and industry
activities impacting our business, (6) opportunities we see to
deliver value to our shareholders, (7) our dividends (including
timing of payment thereof) and our dividend (including on a per
share basis) growth rate, including its driving factors, and
targets, (8) expected completion of fiber expansion projects, (9)
small cell backlog, (10) debt maturities, (11) strategic
position of our portfolio of assets, (12) cash flows,
including growth thereof, (13) leasing activity and the timing
thereof, (14) tenant non-renewals, including the impact and timing
thereof, (15) capital expenditures, including sustaining and
discretionary capital expenditures, the timing thereof and any
efficiencies that may result therefrom, and the discretionary
capital budget and the funding thereof, (16) straight-line
adjustments, (17) revenues and growth thereof and benefits derived
therefrom, (18) net income (loss) (including on a per share
basis), (19) Adjusted EBITDA, including components thereof and
growth thereof, (20) expenses, including interest expense and
amortization of deferred financing costs, (21) FFO (including on a
per share basis) and growth thereof, (22) AFFO (including on a per
share basis) and its components and growth thereof and
corresponding driving factors, (23) Organic Contribution to Site
Rental Revenues and its components, including growth thereof and
contributions therefrom, (24) our weighted-average common shares
outstanding (including on a diluted basis) and growth thereof,
(25) services contribution, (26) pre-paid rent, (27)
appointment of directors, including the effective date 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, including
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 lower 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 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, our business may be adversely affected.
- Our services business has
historically experienced significant volatility in demand, which
reduces the predictability of our results.
- The restatement of our previously
issued financial statements, the errors that resulted in such
restatement, the material weakness that was identified in our
internal control over financial reporting and the determination
that our internal control over financial reporting and disclosure
controls and procedures were not effective, could result in loss of
investor confidence, shareholder litigation or governmental
proceedings or investigations, any of which could cause the market
value of our common stock or debt securities to decline or impact
our ability to access the capital markets.
- 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.
- 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.
- The impact of COVID-19 and related
risks could materially affect our financial position, results of
operations and cash flows.
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 30,2020 |
|
December 31, 2019 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
242 |
|
|
$ |
196 |
|
Restricted cash |
174 |
|
|
137 |
|
Receivables, net |
455 |
|
|
596 |
|
Prepaid expenses |
112 |
|
|
107 |
|
Other current assets |
201 |
|
|
168 |
|
Total current assets |
1,184 |
|
|
1,204 |
|
Deferred site rental
receivables |
1,420 |
|
|
1,424 |
|
Property and equipment,
net |
15,092 |
|
|
14,666 |
|
Operating lease right-of-use
assets |
6,357 |
|
|
6,133 |
|
Goodwill |
10,078 |
|
|
10,078 |
|
Other intangible assets,
net |
4,535 |
|
|
4,836 |
|
Other assets, net |
120 |
|
|
116 |
|
Total assets |
$ |
38,786 |
|
|
$ |
38,457 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
264 |
|
|
$ |
334 |
|
Accrued interest |
122 |
|
|
169 |
|
Deferred revenues |
787 |
|
|
657 |
|
Other accrued liabilities |
322 |
|
|
361 |
|
Current maturities of debt and other obligations |
114 |
|
|
100 |
|
Current portion of operating lease liabilities |
316 |
|
|
299 |
|
Total current liabilities |
1,925 |
|
|
1,920 |
|
Debt and other long-term
obligations |
19,190 |
|
|
18,021 |
|
Operating lease
liabilities |
5,713 |
|
|
5,511 |
|
Other long-term
liabilities |
2,456 |
|
|
2,516 |
|
Total liabilities |
29,284 |
|
|
27,968 |
|
Commitments and
contingencies |
|
|
|
CCIC stockholders'
equity: |
|
|
|
Common stock, $0.01 par value; 600 shares authorized; shares issued
and outstanding: September 30, 2020—431 and December 31,
2019—416 |
4 |
|
|
4 |
|
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par
value; 20 shares authorized; shares issued and outstanding:
September 30, 2020—0 and December 31, 2019—2; aggregate
liquidation value: September 30, 2020—$0 and December 31,
2019—$1,650 |
— |
|
|
— |
|
Additional paid-in capital |
17,904 |
|
|
17,855 |
|
Accumulated other comprehensive income (loss) |
(4 |
) |
|
(5 |
) |
Dividends/distributions in excess of earnings |
(8,402 |
) |
|
(7,365 |
) |
Total equity |
9,502 |
|
|
10,489 |
|
Total liabilities and equity |
$ |
38,786 |
|
|
$ |
38,457 |
|
|
|
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, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
(As Restated)(a) |
|
|
|
(As Restated)(a) |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,339 |
|
|
$ |
1,287 |
|
|
$ |
3,968 |
|
|
$ |
3,793 |
|
Services and other |
147 |
|
|
195 |
|
|
379 |
|
|
544 |
|
Net revenues |
1,486 |
|
|
1,482 |
|
|
4,347 |
|
|
4,337 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(b): |
|
|
|
|
|
|
|
Site rental |
370 |
|
|
369 |
|
|
1,123 |
|
|
1,095 |
|
Services and other |
117 |
|
|
146 |
|
|
324 |
|
|
407 |
|
Selling, general and administrative |
154 |
|
|
150 |
|
|
493 |
|
|
457 |
|
Asset write-down charges |
3 |
|
|
2 |
|
|
10 |
|
|
13 |
|
Acquisition and integration costs |
2 |
|
|
4 |
|
|
9 |
|
|
10 |
|
Depreciation, amortization and accretion |
406 |
|
|
388 |
|
|
1,207 |
|
|
1,175 |
|
Total operating expenses |
1,052 |
|
|
1,059 |
|
|
3,166 |
|
|
3,157 |
|
Operating income (loss) |
434 |
|
|
423 |
|
|
1,181 |
|
|
1,180 |
|
Interest expense and
amortization of deferred financing costs |
(168 |
) |
|
(173 |
) |
|
(521 |
) |
|
(510 |
) |
Gains (losses) on retirement
of long-term obligations |
(95 |
) |
|
— |
|
|
(95 |
) |
|
(2 |
) |
Interest income |
— |
|
|
2 |
|
|
2 |
|
|
5 |
|
Other income (expense) |
(3 |
) |
|
(5 |
) |
|
(3 |
) |
|
(6 |
) |
Income (loss) before income
taxes |
168 |
|
|
247 |
|
|
564 |
|
|
667 |
|
Benefit (provision) for income
taxes |
(5 |
) |
|
(5 |
) |
|
(16 |
) |
|
(15 |
) |
Net income (loss) |
163 |
|
|
242 |
|
|
548 |
|
|
652 |
|
Dividends/distributions on
preferred stock |
— |
|
|
(28 |
) |
|
(57 |
) |
|
(85 |
) |
Net income (loss) attributable
to CCIC common stockholders |
$ |
163 |
|
|
$ |
214 |
|
|
$ |
491 |
|
|
$ |
567 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders,
basic |
$ |
0.38 |
|
|
$ |
0.51 |
|
|
$ |
1.17 |
|
|
$ |
1.36 |
|
Net income (loss) attributable to CCIC common stockholders,
diluted |
$ |
0.38 |
|
|
$ |
0.51 |
|
|
$ |
1.17 |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
427 |
|
|
416 |
|
|
420 |
|
|
416 |
|
Diluted |
429 |
|
|
418 |
|
|
422 |
|
|
418 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See our Annual Report on Form 10-K for the year
ended December 31, 2019 for further information.(b) Exclusive of
depreciation, amortization and accretion shown separately.
|
|
CROWN CASTLE INTERNATIONAL CORP.CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)(In
millions of dollars) |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
|
|
(As Restated)(a) |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
548 |
|
|
$ |
652 |
|
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities: |
|
|
|
Depreciation, amortization and accretion |
1,207 |
|
|
1,175 |
|
(Gains) losses on retirement of long-term obligations |
95 |
|
|
2 |
|
Amortization of deferred financing costs and other non-cash
interest, net |
4 |
|
|
1 |
|
Stock-based compensation expense |
108 |
|
|
91 |
|
Asset write-down charges |
10 |
|
|
13 |
|
Deferred income tax (benefit) provision |
2 |
|
|
2 |
|
Other non-cash adjustments, net |
4 |
|
|
4 |
|
Changes in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
Increase (decrease) in liabilities |
(29 |
) |
|
178 |
|
Decrease (increase) in assets |
121 |
|
|
(228 |
) |
Net cash provided by (used for) operating
activities |
2,070 |
|
|
1,890 |
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(1,238 |
) |
|
(1,537 |
) |
Payments for acquisitions, net of cash acquired |
(86 |
) |
|
(15 |
) |
Other investing activities, net |
(12 |
) |
|
3 |
|
Net cash provided by (used for) investing
activities |
(1,336 |
) |
|
(1,549 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from issuance of long-term debt |
3,733 |
|
|
1,895 |
|
Principal payments on debt and other long-term obligations |
(80 |
) |
|
(59 |
) |
Purchases and redemptions of long-term debt |
(2,490 |
) |
|
(12 |
) |
Borrowings under revolving credit facility |
2,140 |
|
|
1,585 |
|
Payments under revolving credit facility |
(2,145 |
) |
|
(2,270 |
) |
Net borrowings (repayments) under commercial paper program |
(80 |
) |
|
— |
|
Payments for financing costs |
(38 |
) |
|
(24 |
) |
Purchases of common stock |
(75 |
) |
|
(44 |
) |
Dividends/distributions paid on common stock |
(1,531 |
) |
|
(1,415 |
) |
Dividends/distributions paid on preferred stock |
(85 |
) |
|
(85 |
) |
Net cash provided by (used for) financing
activities |
(651 |
) |
|
(429 |
) |
Net increase
(decrease) in cash, cash equivalents, and restricted
cash |
83 |
|
|
(88 |
) |
Effect of exchange
rate changes on cash |
— |
|
|
— |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
338 |
|
|
413 |
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
421 |
|
|
$ |
325 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Interest paid |
564 |
|
|
547 |
|
Income taxes paid |
13 |
|
|
13 |
|
|
|
|
|
|
|
(a) See our Annual Report on Form
10-K for the year ended December 31, 2019 for further
information.
|
|
CROWN CASTLE INTERNATIONAL CORP.SEGMENT
OPERATING RESULTS (UNAUDITED)(In millions of dollars) |
SEGMENT OPERATING RESULTS |
|
Three Months Ended September 30, 2020 |
|
Three Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
|
(As Restated)(e) |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
Segment site rental revenues |
$ |
877 |
|
|
$ |
462 |
|
|
|
|
$ |
1,339 |
|
|
$ |
856 |
|
|
$ |
431 |
|
|
|
|
$ |
1,287 |
|
Segment services and other
revenues |
142 |
|
|
5 |
|
|
|
|
147 |
|
|
191 |
|
|
4 |
|
|
|
|
195 |
|
Segment revenues |
1,019 |
|
|
467 |
|
|
|
|
1,486 |
|
|
1,047 |
|
|
435 |
|
|
|
|
1,482 |
|
Segment site rental cost of
operations |
216 |
|
|
145 |
|
|
|
|
361 |
|
|
218 |
|
|
141 |
|
|
|
|
359 |
|
Segment services and other
cost of operations |
111 |
|
|
4 |
|
|
|
|
115 |
|
|
142 |
|
|
2 |
|
|
|
|
144 |
|
Segment cost of
operations(a)(b) |
327 |
|
|
149 |
|
|
|
|
476 |
|
|
360 |
|
|
143 |
|
|
|
|
503 |
|
Segment site rental gross
margin(c) |
661 |
|
|
317 |
|
|
|
|
978 |
|
|
638 |
|
|
290 |
|
|
|
|
928 |
|
Segment services and other
gross margin(c) |
31 |
|
|
1 |
|
|
|
|
32 |
|
|
49 |
|
|
2 |
|
|
|
|
51 |
|
Segment selling, general and
administrative expenses(b) |
22 |
|
|
42 |
|
|
|
|
64 |
|
|
23 |
|
|
49 |
|
|
|
|
72 |
|
Segment operating
profit(c) |
670 |
|
|
276 |
|
|
|
|
946 |
|
|
664 |
|
|
243 |
|
|
|
|
907 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
63 |
|
|
63 |
|
|
|
|
|
|
$ |
56 |
|
|
56 |
|
Stock-based compensation
expense |
|
|
|
|
33 |
|
|
33 |
|
|
|
|
|
|
29 |
|
|
29 |
|
Depreciation, amortization and
accretion |
|
|
|
|
406 |
|
|
406 |
|
|
|
|
|
|
388 |
|
|
388 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
168 |
|
|
168 |
|
|
|
|
|
|
173 |
|
|
173 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
108 |
|
|
108 |
|
|
|
|
|
|
14 |
|
|
14 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
168 |
|
|
|
|
|
|
|
|
$ |
247 |
|
|
FIBER SEGMENT SITE RENTAL REVENUES SUMMARY |
|
Three Months Ended September 30, |
|
2020 |
|
2019 |
|
Fiber Solutions |
|
Small Cells |
|
Total |
|
Fiber Solutions |
|
Small Cells |
|
Total |
Site rental revenues |
$ |
323 |
|
|
$ |
139 |
|
|
$ |
462 |
|
|
$ |
311 |
|
|
$ |
120 |
|
|
$ |
431 |
|
|
(a) Exclusive of depreciation,
amortization and accretion shown separately.(b) Segment
cost of operations excludes (1) stock-based compensation expense of
$6 million and $7 million for the three months ended
September 30, 2020 and 2019, respectively and (2) prepaid
lease purchase price adjustments of $5 million in each of the three
months ended September 30, 2020 and 2019. Selling, general and
administrative expenses exclude stock-based compensation expense of
$27 million and $22 million for the three months ended
September 30, 2020 and 2019, respectively.(c) See "Non-GAAP
Financial Measures, Segment Measures and Other Calculations" 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.(e) See our Annual
Report on Form 10-K for the year ended December 31, 2019 for
further information.
|
SEGMENT OPERATING RESULTS |
|
Nine Months Ended September 30, 2020 |
|
Nine Months Ended September 30, 2019 |
|
|
|
|
|
|
|
|
|
(As Restated)(e) |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
Segment site rental revenues |
$ |
2,612 |
|
|
$ |
1,356 |
|
|
|
|
$ |
3,968 |
|
|
$ |
2,526 |
|
|
$ |
1,267 |
|
|
|
|
$ |
3,793 |
|
Segment services and other
revenues |
367 |
|
|
12 |
|
|
|
|
379 |
|
|
533 |
|
|
11 |
|
|
|
|
544 |
|
Segment revenues |
2,979 |
|
|
1,368 |
|
|
|
|
4,347 |
|
|
3,059 |
|
|
1,278 |
|
|
|
|
4,337 |
|
Segment site rental cost of
operations |
648 |
|
|
447 |
|
|
|
|
1,095 |
|
|
647 |
|
|
418 |
|
|
|
|
1,065 |
|
Segment services and other
cost of operations |
311 |
|
|
8 |
|
|
|
|
319 |
|
|
395 |
|
|
6 |
|
|
|
|
401 |
|
Segment cost of
operations(a)(b) |
959 |
|
|
455 |
|
|
|
|
1,414 |
|
|
1,042 |
|
|
424 |
|
|
|
|
1,466 |
|
Segment site rental gross
margin(c) |
1,964 |
|
|
909 |
|
|
|
|
2,873 |
|
|
1,879 |
|
|
849 |
|
|
|
|
2,728 |
|
Segment services and other
gross margin(c) |
56 |
|
|
4 |
|
|
|
|
60 |
|
|
138 |
|
|
5 |
|
|
|
|
143 |
|
Segment selling, general and
administrative expenses(b) |
71 |
|
|
137 |
|
|
|
|
208 |
|
|
73 |
|
|
147 |
|
|
|
|
220 |
|
Segment operating
profit(c) |
1,949 |
|
|
776 |
|
|
|
|
2,725 |
|
|
1,944 |
|
|
707 |
|
|
|
|
2,651 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
198 |
|
|
198 |
|
|
|
|
|
|
$ |
168 |
|
|
168 |
|
Stock-based compensation
expense |
|
|
|
|
106 |
|
|
106 |
|
|
|
|
|
|
90 |
|
|
90 |
|
Depreciation, amortization and
accretion |
|
|
|
|
1,207 |
|
|
1,207 |
|
|
|
|
|
|
1,175 |
|
|
1,175 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
521 |
|
|
521 |
|
|
|
|
|
|
510 |
|
|
510 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
129 |
|
|
129 |
|
|
|
|
|
|
41 |
|
|
41 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
564 |
|
|
|
|
|
|
|
|
$ |
667 |
|
FIBER SEGMENT SITE RENTAL REVENUES SUMMARY |
|
Nine Months Ended September 30, |
|
2020 |
|
2019 |
|
Fiber Solutions |
|
Small Cells |
|
Total |
|
Fiber Solutions |
|
Small Cells |
|
Total |
Site rental revenues |
$ |
950 |
|
|
$ |
406 |
|
|
$ |
1,356 |
|
|
$ |
921 |
|
|
$ |
346 |
|
|
$ |
1,267 |
|
|
(a) Exclusive of depreciation, amortization and
accretion shown separately.(b) Segment cost of operations excludes
(1) stock-based compensation expense of $19 million and $21 million
for the nine months ended September 30, 2020 and 2019, respectively
and (2) prepaid lease purchase price adjustments of $14 million and
$15 million for the nine months ended September 30, 2020 and 2019,
respectively. Selling, general and administrative expenses exclude
stock-based compensation expense of $87 million and $69 million for
the nine months ended September 30, 2020 and 2019, respectively.(c)
See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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.(e) See our Annual Report on
Form 10-K for the year ended December 31, 2019 for further
information.
|
|
Contacts: |
Dan Schlanger, CFO |
|
Ben Lowe, VP &
Treasurer |
|
Crown Castle International
Corp. |
|
713-570-3050 |
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