HOUSTON, Feb. 24, 2009 (GLOBE NEWSWIRE) -- Crown Castle International Corp. (NYSE:CCI) today reported results for the quarter and year ended December 31, 2008.
"We had an excellent fourth quarter and full year 2008, exceeding our previously provided outlook for site rental gross margin, Adjusted EBITDA and recurring cash flow," stated Ben Moreland, President and Chief Executive Officer of Crown Castle. "Despite current economic conditions, leasing demand for our towers remains strong and consistent with levels experienced in 2007 and 2008, fueled by the continued demand for voice and 3G data services and the continued migration from landlines to wireless. As reflected in recent announcements by some of our largest customers, wireless communications, and particularly the wireless data market, continue to resist underlying economic trends, as evidenced by year-over-year growth in data revenues. Data revenues continue to be of increasing importance to the carriers and our results indicate that we are well-positioned to take advantage of this trend in wireless communications."
CONSOLIDATED FINANCIAL RESULTS
Site rental revenues for fourth quarter 2008 increased $17.5 million, or 5%, to $355.0 million from $337.5 million for the same period in the prior year. Adjusting for the impact of the 24% decrease in the Australian dollar to U.S. dollar exchange rate from fourth quarter 2007 to fourth quarter 2008, site rental revenue grew 7%. Site rental gross margin, defined as site rental revenues less site rental cost of operations, increased 7% to $240.8 million, up $16.0 million in the fourth quarter of 2008 from $224.8 million in the same period in 2007. Adjusted EBITDA for fourth quarter 2008 increased $16.2 million, or 8%, to $225.4 million, up from $209.2 million for the same period in 2007. On a currency-adjusted basis, both site rental gross margin and Adjusted EBITDA grew 9% in the fourth quarter of 2008 compared to the same quarter in 2007.
Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, increased from $110.9 million in the fourth quarter of 2007 to $125.1 million for the fourth quarter of 2008, up 13%, or 15% on a currency-adjusted basis. Recurring cash flow per share, defined as recurring cash flow divided by weighted average common shares outstanding, was $0.44 in the fourth quarter of 2008 compared to $0.39 in the fourth quarter of 2007, an 11% increase, or 14% on a currency-adjusted basis.
Net loss was $63.8 million for the fourth quarter of 2008 compared to a net loss of $80.2 million for the same period in 2007. Net loss after deduction of dividends on preferred stock was $69.0 million in the fourth quarter of 2008, compared to a loss of $85.4 million for the same period in 2007. Fourth quarter 2008 net loss per share was $0.24, compared to a net loss per share of $0.30 in the fourth quarter of 2007.
Site rental revenues for full year 2008 increased 9% to $1.403 billion, up $116.1 million from $1.286 billion for full year 2007. The comparisons between full year 2008 and full year 2007 results were not materially impacted by the Australian dollar to U.S. dollar exchange rate. Site rental gross margin for full year 2008 increased 12% to $946.4 million, up $103.3 million from $843.1 million for full year 2007. Adjusted EBITDA for full year 2008 increased $108.5 million, or 14%, to $867.1 million, up from $758.6 million for full year 2007.
Recurring cash flow increased $100.9 million, or 26%, from $385.1 million for full year 2007 to $485.9 million for full year 2008. Recurring cash flow per share was $1.72 in full year 2008 compared to $1.38 for full year 2007.
Net loss was $48.9 million for full year 2008 compared to a net loss of $222.8 million for full year 2007. Net loss after deduction of dividends on preferred stock was $69.7 million for full year 2008, compared to a net loss of $243.6 million for full year 2007. Full year 2008 net loss per share was $0.25 compared to a net loss per share of $0.87 for full year 2007.
SEGMENT RESULTS
U.S. site rental revenues for the fourth quarter of 2008 increased $22.5 million, or 7%, to $339.3 million, compared to fourth quarter 2007 U.S. site rental revenues of $316.8 million. U.S. site rental gross margin increased 9%, or $19.9 million, in fourth quarter 2008 to $230.0 million from $210.1 million in the same period in 2007.
Crown Castle's fourth quarter Australia operations were negatively impacted by the approximately 24% decline in the Australian dollar to U.S. dollar exchange rate from the fourth quarter of 2007 to the fourth quarter of 2008. Revenues from Australia represented approximately 6% of total consolidated revenues in 2008. On a currency-adjusted basis and before a non-recurring payment of $1.8 million that was received in the fourth quarter of 2007, Australia site rental revenues and site rental gross margin for fourth quarter 2008 grew 10% over fourth quarter 2007.
INVESTMENTS AND LIQUIDITY
During the first quarter of 2009, Crown Castle issued $900.0 million of senior notes due in 2015 and extended its revolving credit facility for 364 days. The net proceeds from the notes offering will be used for general corporate purposes including the repayment or repurchase of certain outstanding indebtedness of Crown Castle's subsidiaries. Also, during the first quarter of 2009, Crown Castle purchased $134.8 million of its Global Signal securitized notes for $125.5 million, which represents a 7% discount to the face amount of such notes. These purchases were comprised of $47.1 million face value of Global Signal securitized notes due in December 2009 (purchased for $46.5 million, including accrued interest), and $87.8 million face value of Global Signal securitized loans due in February 2011 (purchased for $79.0 million, including accrued interest). As of February 24, 2009, Crown Castle had approximately $860.0 million in cash and investments (excluding restricted cash) and $30.0 million of undrawn capacity under its revolving credit facility.
"We are very pleased to have successfully accessed the credit markets to both extend our revolving credit facility and issue the senior notes, particularly in this difficult credit environment," stated Jay Brown, Chief Financial Officer of Crown Castle. "The proceeds of the notes offering, together with the significant cash flow generated by our business and the substantial reduction in our discretionary capital expenditures, allow us to both repay the $411.0 million of debt maturities due in the next twelve months and considerably reduce our future refinancing requirements. As anticipated, during the fourth quarter of 2008, we reduced capital expenditures on land and new tower construction by $50.0 million, or 44%, compared to third quarter 2008, completing the majority of our in-process projects. Further, based on our current expectations, we believe 2009 expenditures on land and new tower construction will be approximately 90% lower than 2008 levels."
During the fourth quarter of 2008, Crown Castle invested $108.0 million in capital expenditures comprised of $12.2 million of sustaining capital expenditures and $95.8 million of revenue generating capital expenditures, of which $36.8 million was spent on land purchases, $33.2 million on existing sites, and $25.8 million on the construction and acquisition of new sites.
In the fourth quarter of 2008, Crown Castle recorded an impairment charge of $32.2 million related to the decline in the market value of its FiberTower investment. As of December 31, 2008, Crown Castle's FiberTower investment had a carrying value of $4.2 million.
In addition to the tables and information contained in this press release, Crown Castle will post supplemental information on its website at http://investor.crowncastle.com that will be discussed during its conference call tomorrow morning, Wednesday February 25, 2009.
OUTLOOK
The following Outlook tables are based on current expectations and assumptions. The Outlook tables include the increased interest expense associated with the $900 million of 9% senior notes issued in January 2009, and assume a U.S. dollar to Australian dollar exchange rate of 0.65 U.S. dollars to 1.00 Australian dollar for first quarter and full year 2009 Outlook. For the purposes of this Outlook, interest expense is based on run-rate interest charges, and does not assume early debt retirement prior to the maturity date, with the exception of the purchases to-date.
This Outlook section contains forward-looking statements, and actual results may differ materially. Information regarding potential risks which could cause actual results to differ from the forward-looking statements herein is set forth below and in Crown Castle's filings with the Securities and Exchange Commission ("SEC").
The following table sets forth Crown Castle's current Outlook for the first quarter of 2009 and full year 2009:
(in millions, except per share First Quarter
amounts) 2009 Full Year 2009
---------------- ----------------
Site rental revenues $363 to $368 $1,485 to $1,500
Site rental cost of operations $111 to $116 $465 to $475
Site rental gross margin $250 to $255 $1,015 to $1,030
Adjusted EBITDA $232 to $237 $925 to $945
Interest expense and amortization
of deferred financing costs(a) $103 to $108 $440 to $445
Sustaining capital expenditures $8 to $10 $25 to $30
Recurring cash flow $119 to $124 $455 to $475
Net income (loss) after deduction
of dividends on preferred stock $(41) to $17 $(146) to $(1)
Net income (loss) per share(b) $(0.14) to 0.06 $(0.51) to $0.00
(a) Inclusive of $10.8 million and $46.1 million, respectively, of
non-cash expense.
(b) Represents net income (loss) per common share, based on 285.7
million shares outstanding as of December 31, 2008.
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Wednesday, February 25, 2009, at 10:30 a.m. eastern time to discuss fourth quarter and full year 2008 results and Crown Castle's Outlook. Supplemental materials for the call can be found on the Crown Castle website at http://investor.crowncastle.com. Please dial 303-262-2004 and ask for the Crown Castle call at least 10 minutes prior to the start time. The conference call may also be accessed at the Internet address shown above. A telephonic replay of the conference call will be available from 12:30 p.m. eastern time on Wednesday, February 25, 2009 through 11:59 p.m. eastern time on Wednesday, March 4, 2009 and may be accessed by dialing 303-590-3000 using passcode 11126071#. An audio archive will also be available on the company's website at http://investor.crowncastle.com shortly after the call and will be accessible for approximately 90 days.
Crown Castle owns, operates, and leases towers and other communication structures for wireless communications. Crown Castle offers significant wireless communications coverage to 91 of the top 100 U.S. markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 22,000 and approximately 1,600 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle, please visit http://www.crowncastle.com.
The Crown Castle International Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3063
Summary of Non-Cash Amounts in Tower Gross Margin
In accordance with applicable accounting standards, Crown Castle recognizes site rental revenues and ground lease expenses monthly on a straight-line basis, regardless of whether the receipts and payments are in equal monthly amounts. If, and to the extent the payment terms call for fixed escalations (as in fixed dollar or fixed percentage increases or rent free periods), the effect of such increases is recognized on a straight-line basis over the appropriate lease term. As a result of this accounting method, a portion of the revenue and expense recognized in a given period represents cash collected or paid in other periods.
A summary of the non-cash portions of our site rental revenues, ground lease expense, stock-based compensation for those employees directly related to tower operations, net amortization of below-market and above-market leases, and resulting impact on site rental gross margins is as follows:
For the Three For the Twelve
Months Ended Months Ended
-------------- --------------
December 31, December 31,
(in thousands) 2008 2008
-------------- --------------
Non-cash portion of site rental
revenues attributable to straight-line
recognition of revenues $ 9,189 $ 40,281
Non-cash portion of ground lease
expense attributable to straight-line
recognition of expenses (9,118) (38,171)
Stock-based compensation expenses
directly related to tower operations (249) (935)
Net amortization of below-market and
above-market leases 154 589
-------------- --------------
Non-cash impact on site rental gross
margin $ (24) $ 1,764
============== ==============
Non-GAAP Financial Measures
This press release includes presentations of Adjusted EBITDA and recurring cash flow, which are non-GAAP financial measures.
Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges, acquisition and integration costs, depreciation, amortization and accretion, interest expense and amortization of deferred financing costs, losses on purchases and redemptions of debt, net gain (loss) on interest rate swaps, impairment of available-for-sale securities, interest and other income (expense), benefit (provision) for income taxes, minority interests, cumulative effect of change in accounting principle, income (loss) from discontinued operations, and stock-based compensation expense. Adjusted EBITDA is not intended as an alternative measure of operating results or cash flow from operations (as determined in accordance with Generally Accepted Accounting Principles ("GAAP")).
Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less sustaining capital expenditures. Each of the amounts included in the calculation of recurring cash flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures, which is not defined under GAAP. We define sustaining capital expenditures as capital expenditures (determined in accordance with GAAP) which do not increase the capacity or life of our revenue generating assets and include capitalized costs related to (i) maintenance activities on our towers, (ii) vehicles, (iii) information technology equipment, and (iv) office equipment. Recurring cash flow is not intended as an alternative measure of cash flow from operations or operating results (as determined in accordance with GAAP).
Adjusted EBITDA and recurring cash flow are presented as additional information because management believes these measures are useful indicators of the financial performance of our core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. Our measures of Adjusted EBITDA and recurring cash flow may not be comparable to similarly titled measures of other companies, including other companies in the tower sector. The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures:
Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarters and years ended December 31, 2008 and 2007 are computed as follows:
For the Three Months For the Twelve
Ended Months Ended
-------------------- --------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2008 2007 2008 2007
--------- --------- --------- ---------
(in thousands, except per
share amounts)
Net income (loss) $ (63,817) $ (80,169) $ (48,858) $(222,813)
Adjustments to increase
(decrease) net income
(loss):
Restructuring charges(a) -- -- -- 3,191
Asset write-down charges 7,689 1,466 16,888 65,515
Integration costs(a) -- 6,752 2,504 25,418
Depreciation, amortization
and accretion 130,799 132,347 526,442 539,904
Interest expense and
amortization of deferred
financing costs 88,074 90,047 354,114 350,259
Net gain (loss) on interest
rate swaps 40,292 -- 37,888 --
Impairment of
available-for-sale
securities 32,151 75,623 55,869 75,623
Interest and other income
(expense) (474) (181) (2,143) (9,351)
Benefit (provision) for
income taxes (17,282) (24,334) (104,361) (94,039)
Minority interests -- -- -- (151)
Stock-based compensation
charges(b) 7,953 7,674 28,767 25,087
--------- --------- --------- ---------
Adjusted EBITDA $ 225,385 $ 209,225 $ 867,110 $ 758,643
========= ========= ========= =========
Less: Interest expense and
amortization of deferred
financing costs 88,074 90,047 354,114 350,259
Less: Sustaining capital
expenditures 12,230 8,238 27,065 23,318
--------- --------- --------- ---------
Recurring cash flow $ 125,081 $ 110,940 $ 485,931 $ 385,066
========= ========= ========= =========
Weighted average common
shares outstanding -
basic and diluted 285,686 281,691 282,007 279,937
Recurring cash flow per
share $ 0.44 $ 0.39 $ 1.72 $ 1.38
========= ========= ========= =========
-------------
(a) Including stock-based compensation expense.
(b) Exclusive of charges included in integration costs and
restructuring charges.
Adjusted EBITDA and recurring cash flow for the quarter ending March 31, 2009 and the year ending December 31, 2009 are forecasted as follows:
Q1 2009 Full Year 2009
------- --------------
Outlook Outlook
------- -------
(in millions)
Net income (loss) $(36) to $22 $(125) to $20
Adjustments to increase (decrease) net
income (loss):
Asset write-down charges $2 to $5 $8 to $20
Acquisitions costs $-- to $1 $-- to $3
Depreciation, amortization and
accretion $130 to $140 $520 to $550
Interest and other income (expense) $(3) to $-- $(12) to $-
Net gain (loss) on interest rate
swaps(a) $(12) to $-- $(12) to $--
Interest expense and amortization of
deferred financing costs(b) $103 to $108 $440 to $445
Benefit (provision) for income taxes $(11) to $5 $(43) to $(3)
Minority interests -- $(1) to $--
Stock-based compensation charges $6 to $9 $25 to $35
-------- ----------
Adjusted EBITDA $232 to $237 $925 to $945
============ ============
Less: Interest expense and amortization
of deferred financing costs(b) $103 to $108 $440 to $445
Less: Sustaining capital expenditures $8 to $10 $25 to $30
--------- ----------
Recurring cash flow $119 to $124 $455 to $475
============ ============
-------------
(a) Based on the interest rates and yield curves in effect as of
February 19, 2009.
(b) Inclusive of $10.8 million and $46.1 million, respectively, of
non-cash expense.
Other Calculations:
Sustaining capital expenditures for the quarters and years ended December 31, 2008 and December 31, 2007 is computed as follows:
For the Three For the Twelve
Months Ended Months Ended
------------------ ------------------
(in thousands) Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2008 2007 2008 2007
-------- -------- -------- --------
Capital Expenditures $107,995 $108,747 $450,732 $300,005
Less: Revenue enhancing on
existing sites 33,157 17,913 90,111 45,818
Less: Land purchases 36,842 35,016 201,255 133,032
Less: New site acquisition and
construction 25,766 47,580 132,301 97,837
-------- -------- -------- --------
Sustaining capital
expenditures $ 12,230 $ 8,238 $ 27,065 $ 23,318
======== ======== ======== ========
Site rental gross margin for the quarter ending March 31, 2009 and for the year ending December 31, 2009 is forecasted as follows:
(in millions) Q1 2009 Full Year 2009
------- --------------
Outlook Outlook
------- -------
Site rental revenues $363 to $368 $1,485 to $1,500
Less: Site rental cost of operations $111 to $116 $465 to $475
------------ ------------
Site rental gross margin $250 to $255 $1,015 to $1,030
============ ================
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements and information that are based on our management's current expectations. Such statements include, but are not limited to, plans, projections, Outlook and estimates regarding (i) leasing demand for our sites and towers, (ii) trends in wireless communications, including the migration to wireless communications and the demand for and resilience of wireless communications and 3G data services, and our ability to take advantage of such trends, (iii) the repayment, repurchase or refinancing of our debt, (iv) the use and impact of the proceeds of our 9% senior notes offering, (v) currency exchange rates, including the impact on our results, (vi) site rental revenues, (vii) site rental cost of operations, (viii) site rental gross margin, (ix) Adjusted EBITDA, (x) interest expense and amortization of deferred financing costs, (xi) capital expenditures, including expenditures on land and new towers, revenue generating expenditures and sustaining capital expenditures, (xii) recurring cash flow, including on a per share basis, (xiii) net income (loss), including on a per share basis, and (xiv) the utility of certain financial measures in analyzing our results. Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:
* We have a substantial amount of indebtedness, the majority, if not
all, of which we anticipate refinancing or repaying within the next
three years. 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.
* 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.
* Our interest rate swaps are currently in a substantial liability
position and will need to be cash settled within the next three
years, which could adversely affect our financial condition.
* Our business depends on the demand for wireless communications and
towers, and we may be adversely affected by any slowdown in such
demand.
* A substantial portion of our revenues is derived from a small
number of customers, and the loss, consolidation or financial
instability of, or network sharing among, any of our limited number
of customers may materially decrease revenues.
* Consolidation among our customers may result in duplicate or
overlapping parts of networks, which may result in a reduction of
sites and have a negative effect on revenues and cash flows.
* Sales or issuances of a substantial number of shares of our common
stock may adversely affect the market price of our common stock.
* A wireless communications industry slowdown may materially and
adversely affect our business (including reducing demand for our
towers and network services) and the business of our customers.
* As a result of competition in our industry, including from some
competitors with significantly more resources or less debt than we
have, we may find it more difficult to achieve favorable rental
rates on our towers.
* New technologies may significantly reduce demand for our towers and
negatively impact our revenues.
* New wireless technologies may not deploy or be adopted by customers
as rapidly or in the manner projected.
* If we fail to retain rights to the land under our towers, our
business may be adversely affected.
* If we are unable to raise capital in the future when needed, we may
not be able to fund future growth opportunities.
* Our lease relating to our Spectrum has certain risk factors
different from our core tower business, including that the Spectrum
lease may not be renewed or continued, that the option to acquire
the Spectrum may not be exercised, and that the Spectrum may not be
deployed, which may result in the revenues derived from the
Spectrum being less than those that may otherwise have been
anticipated.
* If we fail to comply with laws and regulations which regulate our
business and which may change at any time, we may be fined or even
lose our right to conduct some of our business.
* Our network services business has historically experienced
significant volatility in demand, which reduces the predictability
of our results.
* If radio frequency emissions from wireless handsets or equipment on
our towers are demonstrated to cause negative health effects,
potential future claims could adversely affect our operations,
costs and revenues.
* Certain provisions of our certificate of incorporation, bylaws and
operative agreements and domestic and international competition
laws may make it more difficult for a third party to acquire
control of us or for us to acquire control of a third party, even
if such a change in control would be beneficial to our stockholders.
* We are exposed to counterparty risk through our interest rate swaps
and a counterparty default could adversely affect our financial
condition.
* We may be adversely affected by our exposure to changes in foreign
currency exchange rates relating to our operations in Australia.
Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More information about potential risk factors which could affect our results is included in our filings with the SEC.
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(in thousands)
December 31, December 31,
2008 2007
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 155,219 $ 75,245
Restricted cash 147,852 165,556
Receivables, net of allowance for
doubtful accounts 37,621 33,842
Deferred income tax assets 28,331 113,492
Prepaid expenses, deferred site rental
receivables and other current assets 116,145 109,120
------------ ------------
Total current assets 485,168 497,255
Restricted cash 5,000 5,000
Deferred site rental receivables 144,474 127,388
Available-for-sale securities 4,216 60,085
Property and equipment, net 5,060,126 5,051,055
Goodwill 1,983,950 1,970,501
Other intangible assets, net 2,551,332 2,676,288
Deferred financing costs and other assets,
net of accumulated amortization 127,456 100,561
------------ ------------
$ 10,361,722 $ 10,488,133
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 33,808 $ 37,366
Deferred rental revenues and other
accrued liabilities 281,794 249,136
Interest rate swaps 52,539 3,985
Short-term debt and current maturities of
long-term debt 466,217 81,500
------------ ------------
Total current liabilities 834,358 371,987
Long-term debt, less current maturities 5,630,527 5,987,695
Deferred income tax liability 40,446 281,259
Interest rate swaps 488,632 61,356
Other liabilities 337,168 305,127
------------ ------------
Total liabilities 7,331,131 7,007,424
Minority interests -- --
Redeemable preferred stock 314,726 313,798
Stockholders' equity 2,715,865 3,166,911
------------ ------------
$ 10,361,722 $ 10,488,133
============ ============
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) AND OTHER
FINANCIAL DATA
(in thousands, except per share data)
Three Months Ended Years Ended
December 31, December 31,
----------------------------------------------
2008 2007 2008 2007
----------------------------------------------
Net revenues:
Site rental $ 355,019 $ 337,543 $1,402,559 $1,286,468
Network services and
other 37,003 37,620 123,945 99,018
---------- ---------- ---------- ----------
Total net revenues 392,022 375,163 1,526,504 1,385,486
---------- ---------- ---------- ----------
Costs of operations
(exclusive of
depreciation,
amortization and
accretion):
Site rental 114,239 112,718 456,123 443,342
Network services and
other 21,680 22,258 82,452 65,742
---------- ---------- ---------- ----------
Total costs of
operations 135,919 134,976 538,575 509,084
---------- ---------- ---------- ----------
General and
administrative 38,671 38,636 149,586 142,846
Restructuring charges -- -- -- 3,191
Asset write-down
charges 7,689 1,466 16,888 65,515
Integration costs -- 6,752 2,504 25,418
Depreciation,
amortization and
accretion 130,799 132,347 526,442 539,904
---------- ---------- ---------- ----------
Operating income
(loss) 78,944 60,986 292,509 99,528
Interest expense and
amortization of
deferred financing
costs (88,074) (90,047) (354,114) (350,259)
Net gain (loss) on
interest rate swaps (40,292) -- (37,888) --
Impairment of
available-for-sale
securities (32,151) (75,623) (55,869) (75,623)
Interest and other
income (expense) 474 181 2,143 9,351
---------- ---------- ---------- ----------
Income (loss) from
continuing operations
before income taxes
and minority
interests (81,099) (104,503) (153,219) (317,003)
Benefit (provision) for
income taxes 17,282 24,334 104,361 94,039
Minority interests -- -- -- 151
---------- ---------- ---------- ----------
Net income (loss) (63,817) (80,169) (48,858) (222,813)
Dividends on preferred
stock (5,202) (5,201) (20,806) (20,805)
---------- ---------- ---------- ----------
Net income (loss) after
deduction of dividends
on preferred stock $ (69,019) $ (85,370) $ (69,664) $ (243,618)
========== ========== ========== ==========
Net income (loss) per
common share - basic
and diluted $ (0.24) $ (0.30) $ (0.25) $ (0.87)
========== ========== ========== ==========
Weighted average common
shares outstanding -
basic and diluted 285,686 281,691 282,007 279,937
---------- ---------- ---------- ----------
Adjusted EBITDA $ 225,385 $ 209,225 $ 867,110 $ 758,643
========== ========== ========== ==========
Stock-based
compensation expenses:
Site rental cost of
operations $ 249 $ 109 $ 935 $ 396
Network services and
other cost of
operations 281 98 870 371
General and
administrative 7,423 7,467 26,962 24,320
Restructuring charges -- -- -- 2,377
Integration costs -- -- -- 790
---------- ---------- ---------- ----------
Total $ 7,953 $ 7,674 $ 28,767 $ 28,254
========== ========== ========== ==========
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
Twelve Months Ended
December 31,
----------------------
2008 2007
---------- ----------
Cash flows from operating activities:
Net income (loss) $ (48,858) $ (222,813)
Adjustments to reconcile net income (loss) to
net cash provided by (used for) operating
activities:
Depreciation, amortization and accretion 526,442 539,904
Amortization of deferred financing costs and
other non-cash interest 24,830 23,913
Stock-based compensation expense 25,896 23,542
Asset write-down charges 16,888 65,515
Deferred income tax (benefit) provision (113,557) (98,914)
Income (expense) from forward-starting
interest rate swaps 34,111 --
Impairment of available-for-sale securities 55,869 75,623
Other adjustments, net (1,787) (1,331)
Changes in assets and liabilities, excluding
the effects of acquisitions:
Increase (decrease) in liabilities 77,106 13,561
Decrease (increase) in assets (83,939) (68,645)
---------- ----------
Net cash provided by (used for) operating
activities 513,001 350,355
---------- ----------
Cash flows from investing activities:
Proceeds from disposition of property and
equipment 1,855 3,664
Payments for acquisitions (net of cash
acquired) of businesses (27,736) (494,352)
Capital expenditures (450,732) (300,005)
Other -- (755)
---------- ----------
Net cash provided by (used for) investing
activities (476,613) (791,448)
---------- ----------
Cash flows from financing activities:
Proceeds from issuance of long-term debt -- 650,000
Proceeds from issuance of capital stock 8,444 31,176
Principal payments on long-term debt (6,500) (4,875)
Purchases and redemptions of long-term debt (282) --
Purchases of capital stock (44,685) (729,811)
Borrowings under revolving credit agreements 94,400 75,000
Payments for financing costs (1,527) (9,108)
Net decrease (increase) in restricted cash 17,745 (33,089)
Dividends on preferred stock (19,878) (19,879)
Return of capital to minority interest
holders of CCAL -- (37,196)
---------- ----------
Net cash provided by (used for) financing
activities 47,717 (77,782)
---------- ----------
Effect of exchange rate changes on cash (4,131) 1,404
Net increase (decrease) in cash and cash
equivalents 79,974 (517,471)
Cash and cash equivalents at beginning of
period 75,245 592,716
---------- ----------
Cash and cash equivalents at end of period $ 155,219 $ 75,245
========== ==========
Supplemental disclosure of cash flow
information:
Interest paid $ 330,491 $ 324,605
Income taxes paid 6,582 4,218
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(dollars in thousands)
------------------------- -------------------------
Quarter Ended 3/31/08 Quarter Ended 6/30/08
------------------------- -------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC
------------------------- -------------------------
Revenues
Site Rental $323,748 $21,285 $345,033 $328,952 $19,571 $348,523
Services 23,834 1,754 25,588 27,016 3,974 30,990
------------------------- -------------------------
Total Revenues 347,582 23,039 370,621 355,968 23,545 379,513
Operating
Expenses
Site Rental 106,432 5,948 112,380 107,474 6,272 113,746
Services 17,359 1,052 18,411 20,320 1,500 21,820
------------------------- -------------------------
Total Operating
Expenses 123,791 7,000 130,791 127,794 7,772 135,566
General &
Administrative 31,032 3,954 34,986 33,845 4,647 38,492
Add: Stock-Based
Compensation 5,418 737 6,155 6,622 937 7,559
------------------------- -------------------------
Adjusted EBITDA $198,177 $12,822 $210,999 $200,951 $12,063 $213,014
------------------------- -------------------------
------------------------- -------------------------
Quarter Ended 3/31/08 Quarter Ended 6/30/08
------------------------- -------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC
------------------------- -------------------------
Gross Margins:
Site Rental 67% 72% 67% 67% 68% 67%
Services 27% 40% 28% 25% 62% 30%
Adjusted EBITDA
Margin 57% 56% 57% 56% 51% 56%
------------------------- -------------------------
------------------------- -------------------------
Quarter Ended 9/30/08 Quarter Ended 12/31/08
------------------------- -------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC
------------------------- -------------------------
Revenues
Site Rental $332,715 $21,269 $353,984 $339,262 $15,757 $355,019
Services 27,972 2,392 30,364 34,570 2,433 37,003
------------------------- -------------------------
Total Revenues 360,687 23,661 384,348 373,832 18,190 392,022
Operating
Expenses
Site Rental 109,757 6,001 115,758 109,233 5,006 114,239
Services 18,878 1,663 20,541 20,803 877 21,680
------------------------- -------------------------
Total Operating
Expenses 128,635 7,664 136,299 130,036 5,883 135,919
General &
Administrative 33,220 4,217 37,437 35,342 3,329 38,671
Add: Stock-Based
Compensation 6,346 754 7,100 7,510 443 7,953
------------------------- -------------------------
Adjusted EBITDA $205,178 $12,534 $217,712 $215,964 $ 9,421 $225,385
------------------------- -------------------------
------------------------- -------------------------
Quarter Ended 9/30/08 Quarter Ended 12/31/08
------------------------- -------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC
------------------------- -------------------------
Gross Margins:
Site Rental 67% 72% 67% 68% 68% 68%
Services 33% 30% 32% 40% 64% 41%
Adjusted EBITDA
Margin 57% 53% 57% 58% 52% 57%
------------------------- -------------------------
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to
GAAP Financial Measure:
(dollars in thousands)
-----------------------------------------
Quarter Ended
-----------------------------------------
3/31/2008 6/30/2008 9/30/2008 12/31/2008
Net income (loss) $(13,173) $ 60,339 $(32,207) $(63,817)
Adjustments to increase
(decrease) net income
(loss):
Asset write-down charges 1,304 4,993 2,902 7,689
Integration costs 2,504 -- -- --
Depreciation, amortization
and accretion 132,033 131,896 131,714 130,799
Interest and other income
(expense) (2,310) (206) 847 (474)
Net gain (loss) on interest
rate swaps -- -- (2,404) 40,292
Interest expense,
amortization of deferred
financing costs 89,145 88,757 88,138 88,074
Impairment of available-for-
sale securities -- -- 23,718 32,151
Benefit (provision) for
income taxes (4,659) (80,324) (2,096) (17,282)
Stock-based compensation 6,155 7,559 7,100 7,953
-------- -------- -------- --------
Adjusted EBITDA $210,999 $213,014 $217,712 $225,385
======== ======== ======== ========
------------------------------------
CCI FACT SHEET Q4 2007 to Q4 2008
------------------------------------
dollars in thousands
--------------------------------------------------------------------
Q4 '07 Q4 '08 % Change
--------------------------------
CCUSA
-----
Site Rental Revenues $ 316,750 $ 339,262 7%
Ending Sites 22,405 22,489 0%
CCAL
----
Site Rental Revenues $ 20,793 $ 15,757 -24%
Ending Sites 1,441 1,590 10%
TOTAL CCIC
----------
Site Rental Revenues $ 337,543 $ 355,019 5%
Ending Sites 23,846 24,079 1%
--------------------------------------------------------------------
Ending Cash and Cash Equivalents $75,245* $155,219*
Debt
Bank Debt $720,125 $808,025
Securitized Debt & Other Notes $5,349,070 $5,288,719
---------- ----------
Total Debt $6,069,195 $6,096,744
6 1/4% Convertible Preferred Stock $313,798 $314,726
Leverage Ratios
Net Debt / EBITDA 7.2X 6.6X
Net Debt + Preferreds / EBITDA 7.5X 6.9X
Last Quarter Annualized Adjusted
EBITDA $836,900 $901,540
*Excludes Restricted Cash
CONTACT: Crown Castle International Corp.
Jay Brown, CFO
Fiona McKone, VP - Finance
713-570-3050
|
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| Trade Time: |
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