HOUSTON, July 29, 2009 (GLOBE NEWSWIRE) -- Crown Castle International Corp. (NYSE:CCI) today reported results for the quarter ended June 30, 2009.
"We had an excellent second quarter, exceeding the top end of our Outlook for site rental revenue, site rental gross margin, Adjusted EBITDA, and recurring cash flow," stated Ben Moreland, President and Chief Executive Officer of Crown Castle. "Despite prevailing macroeconomic conditions, we continue to enjoy strong leasing demand for our towers, as evidenced by year-over-year revenue and Adjusted EBITDA growth of 8% and 16%, respectively. Importantly, these results were achieved almost entirely through organic growth on assets that we owned as of April 1, 2008. Furthermore, we expect net new tenant additions to be significantly higher in the second half of the year compared to the first half of 2009. In fact, application volume in the second quarter of 2009 was up 30% over application activity in the second quarter of 2008, which we expect to translate into revenue growth in the second half of the year. This activity is driven, in part, by the growing mobile Internet. Based on the strong results in the first half of the year, including the new tenant application volume, and our expectations for the second half of 2009, we have raised our full year 2009 Outlook, which now suggests annual site rental revenue and Adjusted EBITDA growth of 9% and 14%, respectively."
CONSOLIDATED FINANCIAL RESULTS
Site rental revenues for second quarter 2009 increased $27.9 million, or 8%, to $376.4 million from $348.5 million for the same period in the prior year. Site rental gross margin, defined as site rental revenues less site rental cost of operations, increased 12% to $263.1 million, up $28.3 million in the second quarter of 2009 from $234.8 million in the same period in 2008. Adjusted EBITDA for second quarter 2009 increased $33.9 million, or 16%, to $246.9 million, up from $213.0 million for the same period in 2008.
Recurring cash flow, defined as Adjusted EBITDA less interest expense less sustaining capital expenditures, increased from $119.2 million in the second quarter of 2008 to $131.5 million for the second quarter of 2009, up 10%. Recurring cash flow per share, defined as recurring cash flow divided by weighted average common shares outstanding, was $0.46 in the second quarter of 2009 compared to $0.43 in the second quarter of 2008, an increase of 8%.
For the second quarter of 2009, approximately 5% of Crown Castle's consolidated revenues were from its Australia subsidiary. Crown Castle's consolidated results were negatively impacted by the 19% decrease in the Australian dollar to U.S. dollar exchange rate from second quarter 2008 to second quarter 2009. Crown Castle's consolidated growth rates on a currency-neutral basis are as follows: site rental revenue 9%, site rental gross margin 13%, Adjusted EBITDA 17%, recurring cash flow 12%, and recurring cash flow per share 9%.
Net loss attributable to CCIC stockholders was $111.4 million for the second quarter of 2009, inclusive of $98.7 million of losses on purchases and early redemptions of debt and $59.5 million of unrealized losses on interest rate swaps, compared to a net income attributable to CCIC stockholders of $60.3 million for the same period in 2008, inclusive of the recognition of $74.9 million of tax benefits related to previously unrecognized U.S. net operating losses. Net loss attributable to CCIC stockholders after deduction of dividends on preferred stock was $116.6 million in the second quarter of 2009, compared to a net income attributable to CCIC stockholders after deduction of dividends on preferred stock of $55.1 million for the same period in 2008. Diluted second quarter 2009 net loss attributable to CCIC common stockholders per common share was $0.41, compared to a diluted net income attributable to CCIC common stockholders, after deduction of dividends on preferred stock, per common share of $0.19 in the second quarter of 2008.
SEGMENT RESULTS
U.S. site rental revenues for the second quarter of 2009 increased $29.5 million, or 9%, to $358.5 million, compared to second quarter 2008 U.S. site rental revenues of $329.0 million. U.S. site rental gross margin increased 13%, or $29.1 million, in second quarter 2009 to $250.5 million from $221.5 million in the same period in 2008.
On a currency-neutral basis, Australia site rental revenues and site rental gross margin for second quarter 2009 grew 14% and 17% over second quarter 2008. Australia site rental revenues for the second quarter of 2009 were $17.9 million, compared to $19.6 million in the second quarter of 2008. Australia site rental gross margin for second quarter 2009 was $12.5 million, compared to $13.3 million in the second quarter 2008.
INVESTMENTS AND LIQUIDITY
"I am very pleased with our second quarter financial results, our ability to increase our Outlook for the balance of 2009 and the continued progress that we have made to improve our balance sheet," stated Jay Brown, Chief Financial Officer of Crown Castle. "As I've previously discussed, the primary goals of our refinancing efforts have been to extend our debt maturities, spread the debt maturities over multiple years and maintain flexibility to invest our cash flow while achieving the lowest possible interest cost. I believe that the recently announced financing of $250 million of structured notes by certain of our subsidiaries helps achieve all of these goals and potentially establishes an attractive template for future refinancings. Further, our 2009 financing activities have eliminated our requirement to access the credit markets for almost five years, as we are able to repay all of our debt maturities between now and 2014 with cash on-hand and anticipated cash flow."
During the second quarter of 2009, Crown Castle issued $1.2 billion of 7.75% senior secured notes due in 2017. The proceeds of these notes, combined with cash-on-hand, were used to repay, in full, the previously outstanding securitized notes due February 2011.
On July 20, 2009, Crown Castle priced, at par, $250 million of senior secured notes in two classes, A-1 and A-2. The Class A-1 Notes will consist of $175 million of 6.25% Notes and fully amortize during the period beginning in January 2010 and ending on the final maturity date in August 2019. The Class A-2 Notes will consist of $75 million of 9.0% Notes and fully amortize during the period beginning in September 2019 and ending on the final maturity date in August 2029. Crown Castle expects the $250 million notes to close on July 31, 2009. The proceeds are required to be used to repay, in full, the remaining $221.5 million outstanding of the Commercial Mortgage Pass-Through Certificates, Series 2004-2, issued in 2004 by Global Signal Trust II and due in December 2009 ("December 2009 Notes"), which is net of the $72 million of notes that Crown Castle purchased in the open market during the first quarter of 2009.
During the second quarter of 2009, Crown Castle purchased, at par, $15.8 million of the Senior Secured Tower Revenue Notes, Series 2005-1 due in June 2035 ("June 2035 Notes"). Since July 1, 2009, Crown Castle has purchased, at par, $180.4 million of the June 2035 Notes. Pro forma for these purchases, Crown Castle has $1,703.8 million of June 2035 Notes outstanding.
As of June 30, 2009, pro forma for the completion of the $250 million senior secured notes offering, and after taking into account the repayment of the December 2009 Notes and the aforementioned purchases in July by Crown Castle of the June 2035 Notes, Crown Castle expects to have approximately $177 million in cash and cash equivalents (excluding restricted cash) and $188 million of availability under its $188 million revolving credit facility.
During the second quarter of 2009, Crown Castle invested $39.6 million in capital expenditures, comprised of $5.1 million of sustaining capital expenditures and $34.5 million of revenue generating capital expenditures, of which $1.7 million was spent on land purchases, $28.2 million on existing sites, and $4.6 million on the construction and acquisition of new sites. Total capital expenditures were down approximately 72% from the same quarter in 2008.
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, Thursday, July 30, 2009.
OUTLOOK
This Outlook section contains forward-looking statements, and actual results may differ materially. Information regarding potential risks which could cause actual results to differ from the forward-looking statements herein is set forth below and in Crown Castle's filings with the Securities and Exchange Commission ("SEC").
The following Outlook table is based on current expectations and assumptions. The Outlook table includes the interest expense associated with the $250 million of senior secured notes to be issued in July 2009, and assumes a U.S. dollar to Australian dollar exchange rate of 0.79 U.S. dollars and 0.75 U.S. dollars to 1.00 Australian dollar for third quarter and full year 2009 Outlook, respectively.
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 and the repayment of the $221.5 million December 2009 Notes, as discussed above.
As reflected in the following table, Crown Castle has increased the midpoint of its full year 2009 Outlook, previously issued on April 29, 2009, for site rental revenue by $17.5 million, site rental gross margin by $25.5 million, Adjusted EBITDA by $22.5 million and recurring cash flow by $20.5 million.
The following table sets forth Crown Castle's current Outlook for the
third quarter of 2009 and full year 2009:
(in millions, except per
share amounts) Third Quarter 2009 Full Year 2009
------------------ --------------
Site rental revenues $385 to $390 $1,520 to $1,530
Site rental cost of
operations $114 to $120 $455 to $460
Site rental gross margin $268 to $273 $1,063 to $1,073
Adjusted EBITDA $246 to $251 $985 to $995
Interest expense and
amortization of deferred
financing costs(a) $113 to $115 $441 to $446
Sustaining capital
expenditures $8 to $11 $26 to $31
Recurring cash flow $123 to $128 $513 to $523
Net income (loss)
attributable to CCIC
common stockholders
after deduction of
dividends on preferred
stock $(31) to $12 $(172) to $(81)
Net income (loss)
attributable to CCIC
common stockholders
per share(b) $(0.11) to $0.04 $(0.60) to $(0.28)
(a) Inclusive of approximately $17 million and approximately $60
million, respectively, of non-cash expense.
(b) Represents net income (loss) attributable to CCIC common
stockholders per common share, based on 286.5 million shares
outstanding as of June 30, 2009.
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, July 30, 2009, at 10:30 a.m. eastern time. The conference call may be accessed by dialing 480-629-9678 and asking for the Crown Castle call at least 30 minutes prior to the start time. The conference call may also be accessed live over the Internet by logging onto the web at http://investor.crowncastle.com. Any supplemental materials for the call will be posted at the Crown Castle website at http://investor.crowncastle.com.
A telephonic replay of the conference call will be available from 12:30 p.m. eastern time on Thursday, July 30, 2009, through 11:59 p.m. eastern time on Thursday, August 6, 2009, and may be accessed by dialing 303-590-3030 using access code 4114093. 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
The components of interest expense and amortization of deferred
financing costs are as follows:
For the Three Months Ended
--------------------------
June 30, June 30,
2009 2008
--------- ---------
(in thousands)
Interest expense on debt
obligations $ 94,049 $ 82,492
Amortization of deferred financing
costs 6,739 3,842
Amortization of discounts on
long-term debt 3,151 --
Amortization of interest rate swaps 5,311 755
Amortization of purchase price
adjustments on long-term debt 571 943
Other 429 725
--------- ---------
$110,250 $ 88,757
========= =========
The components of interest expense and amortization of deferred
financing costs are forecasted as follows:
Full Year
Q3 2009 2009
Outlook Outlook
------------ ------------
(in millions)
Interest expense on
debt obligations $98 to $100 $380 to $385
Amortization of deferred
financing costs $6 to $8 $26 to $28
Amortization of discounts
on long-term debt $3 to $4 $11 to $13
Amortization of interest
rate swaps $4 to $6 $16 to $18
Amortization of purchase
price adjustments on
long-term debt $0 to $0 $0 to $0
Other $0 to $1 $1 to $3
------------ ------------
$113 to $115 $441 to $446
============ ============
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, gains (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, 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 ended June 30, 2009 and 2008 are computed as
follows:
--------------------------------------------------------------------
For the Three Months Ended
-------------------------------
June 30, June 30,
2009 2008
------------- -------------
(in thousands, except
per share amounts)
Net income (loss) $ (111,767) $ 60,339
Adjustments to increase
(decrease) net income (loss):
Asset write-down charges 7,295 4,993
Acquisition and integration
costs -- --
Depreciation, amortization
and accretion 131,597 131,896
Interest expense and
amortization of deferred
financing costs 110,250 88,757
Gains (losses) on purchases
and redemptions of debt 98,676 --
Net gain (loss) on interest
rate swaps 59,528 --
Interest and other income
(expense) (3,249) (206)
Benefit (provision) for
income taxes (54,949) (80,324)
Stock-based compensation charges 9,481 7,559
------------- -------------
Adjusted EBITDA $ 246,862 $ 213,014
============= =============
Less: Interest expense and
amortization of deferred
financing costs 110,250 88,757
Less: Sustaining capital
expenditures 5,109 5,017
------------- -------------
Recurring cash flow $ 131,503 $ 119,240
============= =============
Weighted average common
shares outstanding - basic 286,449 279,428
Recurring cash flow per share $ 0.46 $ 0.43
============= =============
Adjusted EBITDA and recurring cash flow for the quarter ending
September 30, 2009 and the year ending December 31, 2009 are
forecasted as follows:
--------------------------------------------------------------
Full Year
Q3 2009 2009
(in millions) Outlook Outlook
------------- -------------
Net income (loss) $(26) to $17 $(151) to $(60)
Adjustments to increase
(decrease) net income (loss):
Asset write-down charges $3 to $6 $17 to $24
Gains (losses) on purchases
and redemptions of debt $0 to $1 $85 to $96
Depreciation, amortization
and accretion $130 to $135 $525 to $535
Interest and other income
(expense) $(2) to $1 $(7) to $(1)
Net gain (loss) on interest
rate swaps (a) $(5) to $5 $50 to $60
Interest expense and
amortization of deferred
financing costs(b) $113 to $115 $441 to $446
Benefit (provision) for
income taxes $(11) to $0 $(84) to $(60)
Stock-based compensation
charges $6 to $9 $28 to $36
------------- -------------
Adjusted EBITDA $246 to $251 $985 to $995
============= =============
Less: Interest expense and
amortization of deferred
financing costs(b) $113 to $115 $441 to $446
Less: Sustaining capital
expenditures $8 to $11 $26 to $31
------------- -------------
Recurring cash flow $123 to $128 $513 to $523
============= =============
(a) Based on the interest rates and yield curves in effect as of July
24, 2009.
(b) Inclusive of approximately $17 million and $60 million,
respectively, of non-cash expense.
Other Calculations:
Sustaining capital expenditures for the quarters ended June 30, 2009
and 2008 is computed as follows:
--------------------------------------------------------------------
For the Three Months Ended
---------------------------
June 30, June 30,
(in thousands) 2009 2008
----------- -----------
Capital Expenditures $ 39,624 $ 140,747
Less: Revenue enhancing
on existing sites 28,193 18,356
Less: Land purchases 1,741 73,525
Less: New site acquisition
and construction 4,581 43,849
----------- -----------
Sustaining capital expenditures $ 5,109 $ 5,017
=========== ===========
Site rental gross margin for the quarter ending September 30, 2009
and for the year ending December 31, 2009 is forecasted as follows:
-------------------------------------------------------------------
Q3 2009 Full Year 2009
(in millions) Outlook Outlook
------------ ----------------
Site rental revenues $385 to $390 $1,520 to $1,530
Less: Site rental cost
of operations $114 to $120 $455 to $460
------------ ----------------
Site rental gross margin $268 to $273 $1,063 to $1,073
============ ================
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, including new tenants and revenues which may result from leasing applications, (ii) the completion, terms, impact, interest expense and use of proceeds of the $250 million issuance of senior secured notes, Series 2009-1, (iii) the structure and terms of any future financings, (iv) the repayment, repurchase or refinancing of our debt, including timing with respect thereto, (v) cash, cash equivalents and revolving credit facility availability, (vi) currency exchange rates, including the impact on our results, (vii) site rental revenues, (viii) site rental cost of operations, (ix) site rental gross margin, (x) Adjusted EBITDA, (xi) interest expense and amortization of deferred financing costs, (xii) capital expenditures, including sustaining capital expenditures, (xiii) recurring cash flow, including on a per share basis, (xiv) net income (loss), including on a per share basis, and (xv) 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, including our tower
revenue notes 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)
June 30, December 31,
2009 2008
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 334,989 $ 155,219
Restricted cash 190,886 147,852
Receivables, net of allowance for
doubtful accounts 35,927 37,621
Deferred income tax assets 72,885 28,331
Prepaid expenses, deferred site
rental receivables and other
current assets 106,547 116,145
------------ ------------
Total current assets 741,234 485,168
Restricted cash 5,000 5,000
Deferred site rental receivables 185,157 144,474
Property and equipment, net 4,964,104 5,060,126
Goodwill 1,984,183 1,983,950
Other intangible assets, net 2,478,757 2,551,332
Deferred financing costs and other
assets, net of accumulated
amortization 193,978 131,672
------------ ------------
$ 10,552,413 $ 10,361,722
============ ============
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 27,324 $ 33,808
Deferred rental revenues and
other accrued liabilities 294,641 281,794
Interest rate swaps 161,805 52,539
Short-term debt and current
maturities of long-term debt 248,720 466,217
------------ ------------
Total current liabilities 732,490 834,358
Long-term debt, less current
maturities 6,024,623 5,630,527
Deferred income tax liability 72,747 40,446
Interest rate swaps 119,783 488,632
Other liabilities 363,931 337,168
------------ ------------
Total liabilities 7,313,574 7,331,131
Redeemable preferred stock 315,190 314,726
------------ ------------
CCIC Stockholders' equity 2,924,695 2,715,865
Noncontrolling interest (1,046) --
------------ ------------
Total equity 2,923,649 2,715,865
------------ ------------
$ 10,552,413 $ 10,361,722
============ ============
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
AND OTHER FINANCIAL DATA
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------------------------
2009 2008 2009 2008
---------------------------------------------
Net revenues:
Site rental $ 376,444 $ 348,523 $ 744,111 $ 693,556
Network services
and other 33,430 30,990 68,673 56,578
--------- --------- --------- ---------
Total net revenues 409,874 379,513 812,784 750,134
--------- --------- --------- ---------
Costs of operations
(exclusive of
depreciation,
amortization and
accretion):
Site rental 113,382 113,746 223,080 226,126
Network services
and other 21,009 21,820 43,070 40,231
--------- --------- --------- ---------
Total costs of
operations 134,391 135,566 266,150 266,357
--------- --------- --------- ---------
General and
administrative 38,102 38,492 74,739 73,478
Asset write-down
charges 7,295 4,993 11,386 6,297
Acquisition and
integration costs -- -- -- 2,504
Depreciation,
amortization and
accretion 131,597 131,896 264,773 263,929
--------- --------- --------- ---------
Operating income
(loss) 98,489 68,566 195,736 137,569
Interest expense
and amortization
of deferred
financing costs (110,250) (88,757) (215,837) (177,902)
Gains (losses) on
purchases and
redemptions of
debt (98,676) -- (85,326) --
Net gain (loss)
on interest rate
swaps (59,528) -- (55,733) --
Interest and other
income (expense) 3,249 206 3,003 2,516
--------- --------- --------- ---------
Income (loss) before
income taxes (166,716) (19,985) (158,157) (37,817)
Benefit (provision)
for income taxes 54,949 80,324 56,440 84,983
--------- --------- --------- ---------
Net income (loss) (111,767) 60,339 (101,717) 47,166
Less: Net income
(loss)
attributable to
the noncontrolling
interest (349) -- (876) --
--------- --------- --------- ---------
Net income (loss)
attributable to
CCIC stockholders (111,418) 60,339 (100,841) 47,166
Dividends on
preferred stock (5,201) (5,201) (10,402) (10,403)
--------- --------- --------- ---------
Net income (loss)
attributable to
CCIC stockholders
after deduction
of dividends on
preferred stock $(116,619) $ 55,138 $(111,243) $ 36,763
========= ========= ========= =========
Net income (loss)
attributable to
CCIC common stock-
holders, after
deduction of
dividends on
preferred stock,
per common share:
Basic $ (0.41) $ 0.20 $ (0.39) $ 0.13
Diluted $ (0.41) $ 0.19 $ (0.39) $ 0.13
Weighted average
common shares
outstanding:
Basic 286,449 279,428 286,181 279,384
Diluted 286,449 288,427 286,181 288,242
Adjusted EBITDA $ 246,862 $ 213,014 $ 489,258 $ 424,013
========= ========= ========= =========
Stock-based
compensation
expenses:
Site rental cost
of operations $ 266 $ 210 $ 469 $ 508
Network services
and other cost
of operations 343 238 595 371
General and
administrative 8,872 7,111 16,299 12,835
--------- --------- --------- ---------
Total $ 9,481 $ 7,559 $ 17,363 $ 13,714
========= ========= ========= =========
CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(in thousands)
Six Months Ended
June 30,
----------------------
2009 2008
--------- ---------
Cash flows from operating activities:
Net income (loss) $(101,717) $ 47,166
Adjustments to reconcile net income
(loss) to net cash provided by
(used for) operating activities:
Depreciation, amortization and
accretion 264,773 263,929
Gains (losses) on purchases and
redemptions of long-term debt 85,326 --
Amortization of deferred financing
costs and other non-cash interest 25,662 11,070
Stock-based compensation expense 15,031 12,040
Asset write-down charges 11,386 6,297
Deferred income tax benefit
(provision) (59,780) (83,312)
Income (expense) from forward-
starting interest rate swaps 55,733 --
Other adjustments, net 380 742
Changes in assets and liabilities,
excluding the effects of
acquisitions:
Increase (decrease) in liabilities 8,105 (4,519)
Decrease (increase) in assets (35,441) (37,302)
--------- ---------
Net cash provided by (used for)
operating activities 269,458 216,111
--------- ---------
Cash flows from investing activities:
Proceeds from disposition of property
and equipment 3,172 1,117
Payment for acquisitions (net of
cash acquired) of businesses (1,739) --
Capital expenditures (78,908) (202,434)
--------- ---------
Net cash provided by (used for)
investing activities (77,475) (201,317)
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of long-term
debt 1,978,848 --
Proceeds from issuance of capital
stock 9,778 6,506
Principal payments on long-term debt (3,250) (3,250)
Purchases and redemptions of
long-term debt (1,721,486) --
--------- ---------
Purchases of capital stock (1,218) (44,338)
Borrowings under revolving credit
agreements 50,000 75,000
Payments under revolving credit
agreements (219,400) --
Payments for financing costs (49,815) (1,538)
Net (increase) decrease in
restricted cash (43,034) (15,082)
Dividends on preferred stock (9,938) (9,939)
--------- ---------
Net cash provided by (used for)
financing activities (9,515) 7,359
--------- ---------
Effect of exchange rate changes on
cash (2,698) 1,356
Net increase (decrease) in cash and
cash equivalents 179,770 23,509
Cash and cash equivalents at
beginning of period 155,219 75,245
--------- ---------
Cash and cash equivalents at end of
period $ 334,989 $ 98,754
========= =========
Supplemental disclosure of cash flow
information:
Interest paid $ 145,643 $ 164,867
Income taxes paid 4,424 3,382
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(dollars in thousands)
-------------------------- --------------------------
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%
-------------------------- --------------------------
-------------------------- --------------------------
Quarter Ended 3/31/09 Quarter Ended 6/30/09
-------------------------- --------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC
-------------------------- --------------------------
Revenues
Site Rental $350,695 $16,972 $367,667 $358,511 $17,933 $376,444
Services 33,451 1,792 35,243 32,098 1,332 33,430
-------------------------- --------------------------
Total Revenues 384,146 18,764 402,910 390,609 19,265 409,874
Operating
Expenses
Site Rental 104,979 4,719 109,698 107,983 5,399 113,382
Services 20,919 1,142 22,061 19,915 1,094 21,009
-------------------------- --------------------------
Total Operating
Expenses 125,898 5,861 131,759 127,898 6,493 134,391
General &
Administrative 33,309 3,328 36,637 34,069 4,033 38,102
Add: Stock-
Based
Compensation 6,976 906 7,882 8,055 1,426 9,481
-------------------------- --------------------------
Adjusted
EBITDA $231,915 $10,481 $242,396 $236,697 $10,165 $246,862
-------------------------- --------------------------
-------------------------- --------------------------
Quarter Ended 3/31/09 Quarter Ended 6/30/09
-------------------------- --------------------------
CCUSA CCAL CCIC CCUSA CCAL CCIC
-------------------------- --------------------------
Gross Margins:
Site Rental 70% 72% 70% 70% 70% 70%
Services 37% 36% 37% 38% 18% 37%
Adjusted
EBITDA Margin 60% 56% 60% 61% 53% 60%
-------------------------- --------------------------
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to
GAAP Financial Measure:
(dollars in thousands)
-------------------------------------------
Quarter Ended
-------------------------------------------
9/30/2008 12/31/2008 3/31/2009 6/30/2009
Net income (loss) $ (32,207) $ (63,817) $ 10,050 $ (111,767)
Adjustments to increase
(decrease) net income
(loss):
Asset write-down charges 2,902 7,689 4,091 7,295
Acquisition and
integration costs -- -- -- --
Depreciation,
amortization and
accretion 131,714 130,799 133,176 131,597
Gains (losses) on
purchases and
redemption of debt -- (42) (13,350) 98,676
Interest and other
income (expense) 847 (431) 246 (3,249)
Net gain (loss) on
interest rate swap (2,404) 40,292 (3,795) 59,528
Interest expense,
amortization of deferred
financing costs 88,138 88,074 105,587 110,250
Impairment of available-
for-sale securities 23,718 32,150 -- --
Benefit (provision) for
income taxes (2,096) (17,282) (1,491) (54,949)
Stock-based compensation 7,100 7,953 7,882 9,481
---------- ---------- ---------- ----------
Adjusted EBITDA $ 217,712 $ 225,385 $ 242,396 $ 246,862
============================================
---------------------------------
CCI FACT SHEET Q2 2008 to Q2 2009
---------------------------------
dollars in thousands
---------------------------------------------------------------------
Q2 '08 Q2 '09 % Change
----------------------------------
CCUSA
-----
Site Rental Revenues $ 328,952 $ 358,511 9%
Ending Sites 22,461 22,425 0%
CCAL
----
Site Rental Revenues $ 19,571 $ 17,933 -8%
Ending Sites 1,449 1,591 10%
TOTAL CCIC
----------
Site Rental Revenues $ 348,523 $ 376,444 8%
Ending Sites 23,910 24,016 0%
---------------------------------------------------------------------
Ending Cash and Cash Equivalents $ 98,754* $ 334,989*
Debt
Bank Debt $ 791,875 $ 635,375
Securitized Debt & Other Notes $5,350,870 $5,637,968
---------- ----------
Total Debt $6,142,745 $6,273,343
Leverage Ratios
Net Debt / EBITDA 7.5x 6.3x
Last Quarter Annualized Adjusted
EBITDA $ 852,056 $ 987,448
*Excludes Restricted Cash
CONTACT: Crown Castle International Corp.
Jay Brown, CFO
Fiona McKone, VP - Finance
713-570-3050
(C) Copyright 2009 GlobeNewswire, Inc. All rights reserved.