Crown Castle International Corp. (NYSE:CCI) ("Crown Castle") today
reported results for the quarter and year ended December 31,
2016.
"Our strong fourth quarter and full year 2016
results and increased Outlook for 2017 demonstrates our continued
focus on executing for our customers," stated Jay Brown, Crown
Castle’s Chief Executive Officer. "During 2016, we increased our
dividends per share by 8%, exceeding our long-term goal of 6% to 7%
annual growth. With our recent acquisition of FiberNet, which
closed in January, we now own approximately 40,000 towers and over
26,500 route miles of fiber in key metro markets throughout the US.
We believe our extensive portfolio of shared wireless
infrastructure positions us well to continue to serve our
customers’ needs as they seek to upgrade and enhance network
quality and capacity to meet increasing demand for wireless
connectivity. We believe the expected substantial growth in demand
for mobile data over the next several years provides us the
opportunity to drive organic growth through higher utilization of
our existing assets, while allowing us to deploy capital towards
new assets that we expect will enhance long-term growth in our
dividends per share."
RESULTS FOR THE QUARTERThe
table below sets forth select financial results for the three month
period ended December 31, 2016. For further information, refer to
the financial statements and non-GAAP and other calculation
reconciliations included in this press release.
(in millions) |
Actual |
Midpoint Q4 2016 Outlook(b) |
Actual Compared to Outlook |
Q4 2016 |
|
Q4 2015 |
|
$ Change |
|
% Change |
|
Site rental
revenues |
$ |
817 |
|
$ |
785 |
|
+$ |
32 |
|
4 |
% |
|
$ |
814 |
+$ |
3 |
Site rental gross
margin |
$ |
556 |
|
$ |
538 |
|
+$ |
18 |
|
3 |
% |
|
$ |
559 |
-$ |
3 |
Net income (loss) |
$ |
125 |
|
$ |
141 |
|
-$ |
16 |
|
-11 |
% |
|
$ |
100 |
+$ |
25 |
Adjusted EBITDA(a) |
$ |
575 |
|
$ |
540 |
|
+$ |
35 |
|
6 |
% |
|
$ |
569 |
+$ |
6 |
AFFO(a) |
$ |
406 |
|
$ |
372 |
|
+$ |
34 |
|
9 |
% |
|
$ |
406 |
+$ |
1 |
Weighted-average common
shares outstanding - diluted |
353 |
|
334 |
|
+19 |
6 |
% |
|
346 |
+7 |
|
Note:
Figures may not tie due to rounding |
(a) See
reconciliation of this non-GAAP financial measure to net income
(loss) included herein. |
(b) As
issued on October 20, 2016. |
HIGHLIGHTS FROM THE QUARTER
- Site rental revenues. Site rental
revenues grew approximately 4%, or $32 million, from fourth quarter
2015 to fourth quarter 2016, inclusive of approximately $39 million
in Organic Contribution to Site Rental Revenues plus $10 million in
contributions from acquisitions and other items, less a $17 million
reduction in straight-line revenues. The $39 million in Organic
Contribution to Site Rental Revenues represents approximately 5%
growth, comprised of approximately 8% growth from new leasing
activity and contracted tenant escalations, net of approximately 3%
from tenant non-renewals.
- Capital expenditures. Capital expenditures
during the quarter were approximately $260 million, comprised of
approximately $17 million of land purchases, approximately $42
million of sustaining capital expenditures and approximately $201
million of revenue generating capital expenditures.
- Common stock dividend. During the
quarter, Crown Castle paid common stock dividends of approximately
$343 million in the aggregate, or $0.95 per common share.
- Share count. Per share results during
fourth quarter and full year 2016 were impacted by 11.4 million
shares of common stock issued in November 2016 in contemplation of
funding the previously announced acquisition of FPL FiberNet
Holdings, LLC and certain other subsidiaries of NextEra Energy,
Inc. (collectively, “FiberNet”). The acquisition of FiberNet was
completed on January 17, 2017 and did not contribute to results
during 2016. The share issuance in November 2016 increased the
weighted-average common share outstanding on a diluted basis for
fourth quarter and full year 2016 by approximately 7 million shares
and 2 million shares, respectively.
RESULTS FOR THE YEARThe table
below sets forth select financial results for the year ended
December 31, 2016. For further information, refer to the financial
statements and non-GAAP and other calculation reconciliations
included in this press release.
(in millions) |
Actual |
2016 |
|
2015 |
|
$ Change |
|
% Change |
Site rental
revenues |
$ |
3,233 |
|
$ |
3,018 |
|
+$ |
215 |
|
7 |
% |
Site rental gross
margin |
$ |
2,210 |
|
$ |
2,055 |
|
+$ |
155 |
|
8 |
% |
Net income (loss) |
$ |
357 |
|
$ |
1,524 |
|
- |
$ |
1,167 |
|
-77 |
% |
Adjusted EBITDA(a) |
$ |
2,228 |
|
$ |
2,119 |
|
+$ |
109 |
|
5 |
% |
AFFO(a) |
$ |
1,610 |
|
$ |
1,437 |
|
+$ |
173 |
|
12 |
% |
Weighted-average common
shares outstanding - diluted |
341 |
|
334 |
|
+7 |
|
2 |
% |
|
Note:
Figures may not tie due to rounding |
(a) See
reconciliation of this non-GAAP financial measure to net income
(loss) included herein. |
HIGHLIGHTS FROM THE YEAR
- Site rental revenues. Site rental
revenues grew approximately 7%, or $215 million, from full year
2015 to full year 2016, inclusive of approximately $189 million in
Organic Contribution to Site Rental Revenues plus $90 million in
contributions from acquisitions and other items, less a $64 million
reduction in straight-line revenues. The $189 million in Organic
Contribution to Site Rental Revenues represents approximately 6%
growth, comprised of approximately 9% growth from new leasing
activity and contracted tenant escalations, net of approximately 3%
from tenant non-renewals.
- Capital expenditures. Capital expenditures
during the year were approximately $874 million, comprised of
approximately $75 million of land purchases, approximately $90
million of sustaining capital expenditures and approximately $709
million of revenue generating capital expenditures.
- Common stock dividend. During the year,
Crown Castle paid common stock dividends of approximately $1.2
billion in the aggregate, or $3.605 per common share.
"In addition to generating strong results during
2016, we also enhanced our leading portfolio of wireless
infrastructure with the acquisition of Tower Development
Corporation and continued expansion of our small cell footprint,
including announcing the acquisition of FiberNet and completing the
integration of Sunesys," stated Dan Schlanger, Crown Castle's Chief
Financial Officer. "During the year, we also made significant
progress in increasing our financial flexibility by increasing the
average maturity of our debt, lowering our average interest rate
and achieving investment grade credit ratings, which reflect the
quality and stability of our business and cash flows. With
these accomplishments, together with our position as the leading
wireless infrastructure provider in the US, we believe we are
well-positioned to continue our track record of delivering on our
goal of generating 6% to 7% long-term annual growth in dividends
per share."
OUTLOOKThis Outlook section
contains forward-looking statements, and actual results may differ
materially. Information regarding potential risks which could cause
actual results to differ from the forward-looking statements herein
is set forth below and in Crown Castle's filings with the SEC.
The following table sets forth Crown Castle's
current Outlook for first quarter 2017 and full year 2017:
(in millions) |
First Quarter 2017 |
|
Full Year 2017 |
Site
rental revenues |
$ |
851 |
|
to |
|
$ |
856 |
|
$ |
3,468 |
|
to |
|
$ |
3,498 |
Site
rental cost of operations |
$ |
263 |
|
to |
|
$ |
268 |
|
$ |
1,063 |
|
to |
|
$ |
1,093 |
Site
rental gross margin |
$ |
586 |
|
to |
|
$ |
591 |
|
$ |
2,391 |
|
to |
|
$ |
2,421 |
Net
income (loss) |
$ |
88 |
|
to |
|
$ |
108 |
|
$ |
360 |
|
to |
|
$ |
410 |
Adjusted EBITDA(a) |
$ |
575 |
|
to |
|
$ |
580 |
|
$ |
2,358 |
|
to |
|
$ |
2,388 |
Interest expense and
amortization of deferred financing costs(b) |
$ |
132 |
|
to |
|
$ |
137 |
|
$ |
540 |
|
to |
|
$ |
570 |
FFO(a) |
$ |
395 |
|
to |
|
$ |
400 |
|
$ |
1,616 |
|
to |
|
$ |
1,646 |
AFFO(a) |
$ |
440 |
|
to |
|
$ |
445 |
|
$ |
1,801 |
|
to |
|
$ |
1,831 |
Weighted-average common
shares outstanding - diluted(c) |
|
|
361 |
|
|
|
|
|
361 |
|
|
|
(a) See
reconciliation of this non-GAAP financial measure to net income
(loss) included herein. |
(b) See
the reconciliation of "components of interest expense and
amortization of deferred financing costs" herein for a discussion
of non-cash interest expense. |
(c) The
assumption for first quarter 2017 and full year 2017 diluted
weighted-average common shares outstanding is based on diluted
common shares outstanding as of December 31, 2016. |
Full Year 2017 Outlook
The table below compares the results for full year 2016, the
midpoint of the current full year 2017 Outlook and the midpoint of
the previously provided full year 2017 Outlook for select
metrics.
|
Midpoint of FY 2017 Outlook to FY 2016 Actual
Comparison |
Previous Full Year 2017 Outlook(b) |
Current Compared to Previous Outlook |
($ in millions) |
Current Full Year2017 Outlook |
Full Year 2016 Actual |
$ Change |
% Change |
Site
rental revenues |
$ |
3,483 |
|
$ |
3,233 |
|
+$ |
250 |
|
+8 |
% |
|
$ |
3,329 |
|
+$ |
154 |
Site
rental gross margin |
$ |
2,406 |
|
$ |
2,210 |
|
+$ |
196 |
|
+9 |
% |
|
$ |
2,291 |
|
+$ |
115 |
Net
income (loss) |
$ |
385 |
|
$ |
357 |
|
+$ |
28 |
|
+8 |
% |
|
$ |
400 |
|
-$ |
15 |
Adjusted
EBITDA(a) |
$ |
2,373 |
|
$ |
2,228 |
|
+$ |
145 |
|
+7 |
% |
|
$ |
2,278 |
|
+$ |
95 |
AFFO(a) |
$ |
1,816 |
|
$ |
1,610 |
|
+$ |
206 |
|
+13 |
% |
|
$ |
1,754 |
|
+$ |
62 |
Weighted-average common shares outstanding - diluted(c) |
361 |
|
341 |
|
+20 |
|
+6 |
% |
|
350 |
|
+11 |
|
(a) See reconciliation of this non-GAAP financial measure to
net income (loss) included herein. |
(b) As issued on October 20, 2016. Represents midpoint
of Outlook. |
(c) The assumption for full year 2017 diluted weighted-average
common shares outstanding is based on diluted common shares
outstanding as of December 31, 2016. |
- The increase in full year 2017 Outlook primarily reflects an
expected increase in operating results before the acquisition of
FiberNet and, separately, the expected contribution from FiberNet,
which closed on January 17, 2017, partially offset by expected
higher interest expense.
- The chart below reconciles the components of expected growth
from 2016 to 2017 in site rental revenues of $235 million to $265
million, including expected Organic Contribution to Site Rental
Revenues of approximately $140 million to $170 million.
An infographic accompanying this
announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/95e717e0-a516-4b73-9fc3-af69561cef71
- At the midpoint and compared to the previously provided full
year 2017 Outlook, the increases to full year 2017 Outlook for site
rental revenues and site rental gross margin of $154 million and
$115 million, respectively, include expected contribution to site
rental revenues and site rental gross margin of approximately $150
million and approximately $105 million, respectively, from
FiberNet. General and administrative expenses related to
FiberNet are expected to be approximately $20 million at the
midpoint of full year 2017 Outlook.
- The chart below reconciles the components of expected growth in
AFFO from 2016 to 2017 of approximately $206 million at the
midpoint.
An infographic accompanying this
announcement is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/68e476f9-a7d7-4c7d-9350-e4b5906e1571
- Network services gross margin contribution for first quarter
and full year 2017 is expected to be approximately $57 million to
$62 million and $235 million to $255 million, respectively.
- Additional information is available in Crown Castle's quarterly
Supplemental Information Package posted in the Investors section of
its website.
CONFERENCE CALL DETAILSCrown
Castle has scheduled a conference call for Thursday, January 26,
2017, at 10:30 a.m. Eastern time. The conference call may be
accessed by dialing 800-475-6881 and asking for the Crown Castle
call (access code 3091537) at least 30 minutes prior to the start
time. The conference call may also be accessed live over the
Internet at http://investor.crowncastle.com. Supplemental materials
for the call have been posted on the Crown Castle website at
http://investor.crowncastle.com.
A telephonic replay of the conference call will
be available from 1:30 p.m. Eastern time on Thursday, January 26,
2017, through 1:30 p.m. Eastern time on Wednesday, April 26, 2017
and may be accessed by dialing 888-203-1112 and using access code
3091537. An audio archive will also be available on the company's
website at http://investor.crowncastle.com shortly after the
call and will be accessible for approximately 90 days.
ABOUT CROWN CASTLECrown Castle
provides wireless carriers with the infrastructure they need to
keep people connected and businesses running. With approximately
40,000 towers and 26,500 route miles of fiber supporting small
cells, Crown Castle is the nation's largest provider of shared
wireless infrastructure with a significant presence in the top 100
US markets. For more information on Crown Castle, please visit
www.crowncastle.com.
Non-GAAP Financial Measures and Other
Calculations
This press release includes presentations of
Adjusted EBITDA, Adjusted Funds from Operations ("AFFO"), Funds
from Operations ("FFO"), 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 measures of Adjusted EBITDA, AFFO, FFO,
Organic Contribution to Site Rental Revenues, Segment Site Rental
Gross Margin, Segment Network Services and Other Gross Margin and
Segment Operating Profit may not be comparable to similarly titled
measures of other companies, including other companies in the tower
sector or other 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.
Adjusted EBITDA, AFFO, FFO, and Organic
Contribution to Site Rental Revenues 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 excluding 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 REITs.
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 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 they include (1) the impact
of our capital structure (primarily interest expense on our
outstanding debt and dividends on our preferred stock) and (2)
sustaining capital expenditures, and exclude the impact of our (1)
asset base (primarily depreciation, amortization and accretion) and
(2) 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 the Company 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 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 the Company. 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 customer 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.
In addition to the non-GAAP financial measures
used herein, we also provide Segment Site Rental Gross Margin,
Segment Network Services and Other Gross Margin and Segment
Operating Profit, which are key measures used by management to
evaluate our operating segments for purposes of making decisions
about allocating capital and assessing performance. 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.
We define our non-GAAP financial measures and
other measures as follows:
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-line expense, stock-based compensation expense,
non-cash portion of tax provision, non-real estate related
depreciation, amortization and accretion, amortization of non-cash
interest expense, other (income) expense, gain (loss) on retirement
of long-term obligations, net gain (loss) on interest rate swaps,
gains (losses) on foreign currency swaps, acquisition and
integration costs, and adjustments for noncontrolling interests,
and less capital improvement capital expenditures and corporate
capital expenditures.
Funds from Operations. We define Funds from
Operations as net income plus real estate related depreciation,
amortization and accretion and asset write-down charges, less
noncontrolling interest and cash paid for preferred stock
dividends, and is a measure of funds from operations attributable
to CCIC common stockholders.
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 customer contracts.
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 consist of (1) improvements to existing wireless
infrastructure and construction of new wireless infrastructure
(collectively referred to as "revenue generating") and (2)
purchases of land assets under towers as we seek to manage our
interests in the land beneath our towers.
Sustaining capital expenditures. We define
sustaining capital expenditures as either (1) corporate related
capital improvements, such as buildings, information technology
equipment and office equipment or (2) capital improvements to tower
sites that enable our customers' ongoing quiet enjoyment of the
tower.
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 cost of operations.
Segment Network Services and Other Gross Margin.
We define Segment Network Services and Other Gross Margin as
segment network services and other revenues less segment network
services and other cost of operations, excluding stock-based
compensation expense recorded in cost of operations.
Segment Operating Profit. We define Segment
Operating Profit as segment revenues less segment cost of
operations and segment general and administrative expenses,
excluding stock-based compensation expense and prepaid lease
purchase price adjustments recorded in cost of operations.
The tables set forth below 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 to
Comparable GAAP Financial Measures and Other
Calculations:
Reconciliation of Historical Adjusted
EBITDA:
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
(in
millions) |
|
|
|
|
|
|
|
Net
income (loss) |
$ |
124.7 |
|
|
$ |
141.1 |
|
|
$ |
357.0 |
|
|
$ |
1,524.3 |
|
Adjustments to increase (decrease) net income (loss): |
|
|
|
|
|
|
|
Income
(loss) from discontinued operations |
— |
|
|
1.7 |
|
|
— |
|
|
(999.0 |
) |
Asset
write-down charges |
6.2 |
|
|
13.8 |
|
|
34.5 |
|
|
33.5 |
|
Acquisition and integration costs |
6.0 |
|
|
3.7 |
|
|
17.5 |
|
|
15.7 |
|
Depreciation, amortization and accretion |
273.8 |
|
|
269.6 |
|
|
1,108.6 |
|
|
1,036.2 |
|
Amortization of prepaid lease purchase price adjustments |
5.3 |
|
|
5.1 |
|
|
21.3 |
|
|
20.5 |
|
Interest
expense and amortization of deferred financing costs(a) |
129.4 |
|
|
128.3 |
|
|
515.0 |
|
|
527.1 |
|
Gains
(losses) on retirement of long-term obligations |
— |
|
|
— |
|
|
52.3 |
|
|
4.2 |
|
Interest
income |
(0.3 |
) |
|
(0.7 |
) |
|
(0.8 |
) |
|
(1.9 |
) |
Other
income (expense) |
4.2 |
|
|
1.5 |
|
|
8.8 |
|
|
(57.0 |
) |
Benefit
(provision) for income taxes |
4.1 |
|
|
(42.1 |
) |
|
16.9 |
|
|
(51.5 |
) |
Stock-based compensation expense |
21.2 |
|
|
17.9 |
|
|
96.5 |
|
|
67.1 |
|
Adjusted EBITDA(b) |
$ |
574.6 |
|
|
$ |
539.8 |
|
|
$ |
2,227.5 |
|
|
$ |
2,119.2 |
|
|
(a) See
the reconciliation of "components of interest expense and
amortization of deferred financing costs" herein for a discussion
of non-cash interest expense. |
(b) The
above reconciliation excludes line items included in our definition
which are not applicable for the periods shown. |
Reconciliation of Current Outlook for Adjusted
EBITDA:
|
Q1 2017 |
|
Full Year 2017 |
(in
millions) |
Outlook |
|
Outlook |
Net
income (loss) |
$ |
88 |
|
|
to |
|
$ |
108 |
|
$ |
360 |
|
|
to |
|
$ |
410 |
Adjustments to increase (decrease) net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
write-down charges |
$ |
9 |
|
|
to |
|
$ |
11 |
|
$ |
35 |
|
|
to |
|
$ |
45 |
Acquisition and integration costs |
$ |
5 |
|
|
to |
|
$ |
8 |
|
$ |
19 |
|
|
to |
|
$ |
24 |
Depreciation, amortization and accretion |
$ |
288 |
|
|
to |
|
$ |
303 |
|
$ |
1,217 |
|
|
to |
|
$ |
1,243 |
Amortization of prepaid lease purchase price adjustments |
$ |
4 |
|
|
to |
|
$ |
6 |
|
$ |
20 |
|
|
to |
|
$ |
22 |
Interest
expense and amortization of deferred financing costs(a) |
$ |
132 |
|
|
to |
|
$ |
137 |
|
$ |
540 |
|
|
to |
|
$ |
570 |
Interest
income |
$ |
(1 |
) |
|
to |
|
$ |
0 |
|
$ |
(1 |
) |
|
to |
|
$ |
1 |
Other
income (expense) |
$ |
(1 |
) |
|
to |
|
$ |
2 |
|
$ |
2 |
|
|
to |
|
$ |
4 |
Benefit
(provision) for income taxes |
$ |
2 |
|
|
to |
|
$ |
6 |
|
$ |
14 |
|
|
to |
|
$ |
22 |
Stock-based compensation expense |
$ |
23 |
|
|
to |
|
$ |
25 |
|
$ |
96 |
|
|
to |
|
$ |
101 |
Adjusted EBITDA(b) |
$ |
575 |
|
|
to |
|
$ |
580 |
|
$ |
2,358 |
|
|
to |
|
$ |
2,388 |
|
(a) See
the reconciliation of "components of interest expense and
amortization of deferred financing costs" herein for a discussion
of non-cash interest expense. |
(b) The
above reconciliation excludes line items included in our definition
which are not applicable for the periods shown. |
Reconciliation of Historical FFO and
AFFO:
|
For the Three Months Ended |
|
For the Twelve Months Ended |
(in
millions) |
December 31, 2016 |
|
December 31, 2015 |
|
December 31, 2016 |
|
December 31, 2015 |
Net
income (loss)(a) |
$ |
124.7 |
|
|
$ |
142.7 |
|
|
$ |
357.0 |
|
|
$ |
525.3 |
|
Real
estate related depreciation, amortization and accretion |
267.0 |
|
|
264.7 |
|
|
1,082.1 |
|
|
1,018.3 |
|
Asset
write-down charges |
6.2 |
|
|
13.8 |
|
|
34.5 |
|
|
33.5 |
|
Dividends on preferred stock |
(11.0 |
) |
|
(11.0 |
) |
|
(44.0 |
) |
|
(44.0 |
) |
FFO(b)(c)(d)(e) |
$ |
386.9 |
|
|
$ |
410.3 |
|
|
$ |
1,429.5 |
|
|
$ |
1,533.1 |
|
|
|
|
|
|
|
|
|
FFO
(from above) |
$ |
386.9 |
|
|
$ |
410.3 |
|
|
$ |
1,429.5 |
|
|
$ |
1,533.1 |
|
Adjustments to increase (decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
(5.0 |
) |
|
(22.3 |
) |
|
(47.4 |
) |
|
(111.3 |
) |
Straight-lined expense |
23.1 |
|
|
24.8 |
|
|
94.2 |
|
|
98.7 |
|
Stock-based compensation expense |
21.2 |
|
|
17.9 |
|
|
96.5 |
|
|
67.1 |
|
Non-cash
portion of tax provision |
2.1 |
|
|
(43.7 |
) |
|
7.3 |
|
|
(63.9 |
) |
Non-real
estate related depreciation, amortization and accretion |
6.9 |
|
|
4.8 |
|
|
26.5 |
|
|
17.9 |
|
Amortization of non-cash interest expense |
3.0 |
|
|
4.7 |
|
|
14.3 |
|
|
37.1 |
|
Other
(income) expense |
4.2 |
|
|
1.5 |
|
|
8.8 |
|
|
(57.0 |
) |
Gains
(losses) on retirement of long-term obligations |
— |
|
|
— |
|
|
52.3 |
|
|
4.2 |
|
Acquisition and integration costs |
6.0 |
|
|
3.7 |
|
|
17.5 |
|
|
15.7 |
|
Capital
improvement capital expenditures |
(17.5 |
) |
|
(14.3 |
) |
|
(42.8 |
) |
|
(46.8 |
) |
Corporate
capital expenditures |
(24.6 |
) |
|
(15.2 |
) |
|
(46.9 |
) |
|
(58.1 |
) |
AFFO(b)(c)(d)(e) |
$ |
406.4 |
|
|
$ |
372.2 |
|
|
$ |
1,609.9 |
|
|
$ |
1,436.6 |
|
|
(a)
Exclusive of income (loss) from discontinued operations and related
noncontrolling interest of $(1.7) million and $1.0 billion for the
three months ended December 31, 2015 and twelve months ended
December 31, 2015, respectively. |
(b) See
"Non-GAAP Financial Measures and Other Calculations" herein for a
discussion of our definitions of FFO and AFFO. |
(c) FFO
and AFFO are reduced by cash paid for preferred stock
dividends. |
(d)
Diluted weighted-average common shares outstanding were 352.9
million, 334.3 million, 340.9 million and 334.1 million for the
three months ended December 31, 2016 and 2015, and the twelve
months ended December 31, 2016 and 2015, respectively. The
diluted weighted-average common shares outstanding for the three
months ended December 31, 2015 and twelve months ended December 31,
2015 assumes no conversion of preferred stock in the share
count. |
(e) The
above reconciliation excludes line items included in our definition
which are not applicable for the periods shown. |
Reconciliation of Current Outlook for
FFO and AFFO:
|
Q1 2017 |
|
Full Year 2017 |
(in
millions) |
Outlook |
|
Outlook |
Net
income (loss) |
$ |
88 |
|
|
to |
|
$ |
108 |
|
|
$ |
360 |
|
|
to |
|
$ |
410 |
|
Real
estate related depreciation, amortization and accretion |
$ |
282 |
|
|
to |
|
$ |
295 |
|
|
$ |
1,193 |
|
|
to |
|
$ |
1,214 |
|
Asset
write-down charges |
$ |
9 |
|
|
to |
|
$ |
11 |
|
|
$ |
35 |
|
|
to |
|
$ |
45 |
|
FFO(a)(b)(c) |
$ |
395 |
|
|
to |
|
$ |
400 |
|
|
$ |
1,616 |
|
|
to |
|
$ |
1,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO
(from above) |
$ |
395 |
|
|
to |
|
$ |
400 |
|
|
$ |
1,616 |
|
|
to |
|
$ |
1,646 |
|
Adjustments to increase (decrease) FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-lined revenue |
$ |
(4 |
) |
|
to |
|
$ |
1 |
|
|
$ |
8 |
|
|
to |
|
$ |
23 |
|
Straight-lined expense |
$ |
21 |
|
|
to |
|
$ |
26 |
|
|
$ |
80 |
|
|
to |
|
$ |
95 |
|
Stock-based compensation expense |
$ |
23 |
|
|
to |
|
$ |
25 |
|
|
$ |
96 |
|
|
to |
|
$ |
101 |
|
Non-cash
portion of tax provision |
$ |
0 |
|
|
to |
|
$ |
5 |
|
|
$ |
(3 |
) |
|
to |
|
$ |
12 |
|
Non-real
estate related depreciation, amortization and accretion |
$ |
6 |
|
|
to |
|
$ |
8 |
|
|
$ |
24 |
|
|
to |
|
$ |
29 |
|
Amortization of non-cash interest expense |
$ |
3 |
|
|
to |
|
$ |
6 |
|
|
$ |
11 |
|
|
to |
|
$ |
17 |
|
Other
(income) expense |
$ |
(1 |
) |
|
to |
|
$ |
2 |
|
|
$ |
2 |
|
|
to |
|
$ |
4 |
|
Acquisition and integration costs |
$ |
5 |
|
|
to |
|
$ |
8 |
|
|
$ |
19 |
|
|
to |
|
$ |
24 |
|
Capital
improvement capital expenditures |
$ |
(16 |
) |
|
to |
|
$ |
(11 |
) |
|
$ |
(50 |
) |
|
to |
|
$ |
(45 |
) |
Corporate
capital expenditures |
$ |
(7 |
) |
|
to |
|
$ |
(2 |
) |
|
$ |
(36 |
) |
|
to |
|
$ |
(31 |
) |
AFFO(a)(b)(c) |
$ |
440 |
|
|
to |
|
$ |
445 |
|
|
$ |
1,801 |
|
|
to |
|
$ |
1,831 |
|
|
(a) The
assumption for first quarter 2017 and full year 2017 diluted
weighted-average common shares outstanding is 361 million based on
diluted common shares outstanding as of December 31, 2016. |
(b) See
"Non-GAAP Financial Measures and Other Calculations" herein for a
discussion for our definitions of FFO and AFFO. |
(c) 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 Adjusted EBITDA:
|
Previously Issued |
|
Previously Issued |
|
Q4 2016 |
|
Full Year 2016 |
(in
millions) |
Outlook |
|
Outlook |
Net
income (loss) |
$ |
90 |
|
to |
|
$ |
110 |
|
$ |
318 |
|
to |
|
$ |
338 |
|
Adjustments to increase (decrease) net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
write-down charges |
$ |
9 |
|
to |
|
$ |
11 |
|
$ |
37 |
|
to |
|
$ |
39 |
|
Acquisition and integration costs |
$ |
3 |
|
to |
|
$ |
6 |
|
$ |
14 |
|
to |
|
$ |
17 |
|
Depreciation, amortization and accretion |
$ |
283 |
|
to |
|
$ |
298 |
|
$ |
1,123 |
|
to |
|
$ |
1,138 |
|
Amortization of prepaid lease purchase price adjustments |
$ |
4 |
|
to |
|
$ |
6 |
|
$ |
20 |
|
to |
|
$ |
22 |
|
Interest
expense and amortization of deferred financing costs |
$ |
128 |
|
to |
|
$ |
133 |
|
$ |
514 |
|
to |
|
$ |
519 |
|
Gains
(losses) on retirement of long-term obligations |
$ |
0 |
|
to |
|
$ |
0 |
|
$ |
52 |
|
to |
|
$ |
52 |
|
Interest
income |
$ |
(1 |
) |
to |
|
$ |
0 |
|
$ |
(2 |
) |
to |
|
$ |
(1 |
) |
Other
income (expense) |
$ |
(1 |
) |
to |
|
$ |
2 |
|
$ |
3 |
|
to |
|
$ |
6 |
|
Benefit
(provision) for income taxes |
$ |
4 |
|
to |
|
$ |
8 |
|
$ |
18 |
|
to |
|
$ |
22 |
|
Stock-based compensation expense |
$ |
21 |
|
to |
|
$ |
23 |
|
$ |
97 |
|
to |
|
$ |
99 |
|
Adjusted EBITDA(a) |
$ |
566 |
|
to |
|
$ |
571 |
|
$ |
2,219 |
|
to |
|
$ |
2,224 |
|
|
(a) 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 |
|
Previously Issued |
|
Q4 2016 |
|
Full Year 2016 |
(in millions) |
Outlook |
|
Outlook |
Net income (loss) |
$ |
90 |
|
to |
|
$ |
110 |
|
|
$ |
318 |
|
to |
|
$ |
338 |
|
Real estate related
depreciation, amortization and accretion |
$ |
277 |
|
to |
|
$ |
290 |
|
|
$ |
1,097 |
|
to |
|
$ |
1,110 |
|
Asset write-down
charges |
$ |
9 |
|
to |
|
$ |
11 |
|
|
$ |
37 |
|
to |
|
$ |
39 |
|
Dividends on preferred
stock |
$ |
(11 |
) |
to |
|
$ |
(11 |
) |
|
$ |
(44 |
) |
to |
|
$ |
(44 |
) |
FFO(a)(b)(c) |
$ |
383 |
|
to |
|
$ |
388 |
|
|
$ |
1,426 |
|
to |
|
$ |
1,431 |
|
|
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
383 |
|
to |
|
$ |
388 |
|
|
$ |
1,426 |
|
to |
|
$ |
1,431 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
|
|
Straight-line revenue |
$ |
(8 |
) |
to |
|
$ |
(3 |
) |
|
$ |
(50 |
) |
to |
|
$ |
(45 |
) |
Straight-line expense |
$ |
20 |
|
to |
|
$ |
25 |
|
|
$ |
90 |
|
to |
|
$ |
95 |
|
Stock-based compensation expense |
$ |
21 |
|
to |
|
$ |
23 |
|
|
$ |
97 |
|
to |
|
$ |
99 |
|
Non-cash
portion of tax provision |
$ |
2 |
|
to |
|
$ |
7 |
|
|
$ |
9 |
|
to |
|
$ |
14 |
|
Non-real
estate related depreciation, amortization and accretion |
$ |
6 |
|
to |
|
$ |
8 |
|
|
$ |
26 |
|
to |
|
$ |
28 |
|
Amortization of non-cash interest expense |
$ |
3 |
|
to |
|
$ |
6 |
|
|
$ |
12 |
|
to |
|
$ |
15 |
|
Other
(income) expense |
$ |
(1 |
) |
to |
|
$ |
2 |
|
|
$ |
3 |
|
to |
|
$ |
6 |
|
Gains
(losses) on retirement of long-term obligations |
$ |
0 |
|
to |
|
$ |
0 |
|
|
$ |
52 |
|
to |
|
$ |
52 |
|
Acquisition and integration costs |
$ |
3 |
|
to |
|
$ |
6 |
|
|
$ |
14 |
|
to |
|
$ |
17 |
|
Capital
improvement capital expenditures |
$ |
(20 |
) |
to |
|
$ |
(15 |
) |
|
$ |
(46 |
) |
to |
|
$ |
(41 |
) |
Corporate
capital expenditures |
$ |
(20 |
) |
to |
|
$ |
(15 |
) |
|
$ |
(43 |
) |
to |
|
$ |
(38 |
) |
AFFO(a)(b)(c) |
$ |
403 |
|
to |
|
$ |
408 |
|
|
$ |
1,606 |
|
to |
|
$ |
1,611 |
|
|
(a)
Previously issued fourth quarter 2016 and full year 2016 outlook
assumes diluted weighted average common shares outstanding of
approximately 346 million shares and 340 million shares,
respectively, based on (1) diluted common shares outstanding as of
September 30, 2016 and (2) the assumed conversion of the mandatory
convertible preferred stock in November 2016. |
(b) See
"Non-GAAP Financial Measures and Other Calculations" herein for a
discussion for our definitions of FFO and AFFO. |
(c) FFO
and AFFO are reduced by cash paid for preferred stock
dividends. |
(d) The
above reconciliation excludes line items included in our definition
which are not applicable for the periods shown. |
The components of changes in site rental revenues for
the quarters ended December 31, 2016 and 2015 are as
follows:
|
Three Months Ended December 31, |
(in
millions) |
2016 |
|
2015 |
Components of changes in site rental revenues(f): |
|
|
|
Prior
year site rental revenues exclusive of straight-line associated
with fixed escalators(a)(c) |
$ |
763 |
|
|
$ |
685 |
|
|
|
|
|
New
leasing activity(a)(c) |
38 |
|
|
47 |
|
Escalators |
22 |
|
|
23 |
|
Non-renewals |
(21 |
) |
|
(22 |
) |
Organic
Contribution to Site Rental Revenues(d) |
39 |
|
|
48 |
|
Straight-lined revenues associated with fixed escalators |
5 |
|
|
22 |
|
Acquisitions and builds(b) |
10 |
|
|
30 |
|
Other |
— |
|
|
— |
|
Total
GAAP site rental revenues |
$ |
817 |
|
|
$ |
785 |
|
|
|
|
|
Year-over-year changes in revenue: |
|
|
|
Reported
GAAP site rental revenues |
4.1 |
% |
|
|
Organic
Contribution to Site Rental Revenues(d)(e) |
5.1 |
% |
|
|
|
(a) Includes revenues from amortization of prepaid rent in
accordance with GAAP. |
(b) The financial impact of acquisitions, as measured by the
initial contribution, and tower builds is excluded from Organic
Contribution to Site Rental Revenues until the one-year anniversary
of the acquisition or build. |
(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 and Other Calculations"
herein. |
(e) Calculated as the percentage change from prior year site
rental revenues exclusive of straight-line associated with fixed
escalations compared to Organic Contribution to Site Rental
Revenues for the current period. |
(f) Additional information regarding Crown Castle's site rental
revenues including projected revenue from customer licenses, tenant
non-renewals, straight-lined revenues and prepaid rent is available
in Crown Castle's quarterly Supplemental Information Package posted
in the Investors section of its website. |
The components of the changes in site rental revenues
for the year ending December 31, 2017 is forecasted as
follows:
(in millions) |
Full Year2017 Outlook |
|
Full Year 2016 |
Components of changes
in site rental revenues(g): |
|
|
|
Prior
year site rental revenues exclusive of straight-line associated
with fixed escalators(a)(c) |
$ |
3,186 |
|
|
$ |
2,907 |
|
|
|
|
|
|
|
|
|
New
leasing activity(a)(c) |
150 - 170 |
|
|
174 |
|
Escalators |
80 - 85 |
|
|
89 |
|
Non-renewals |
(95) - (85) |
|
|
(74 |
) |
Organic
Contribution to Site Rental Revenues(d) |
140 - 170 |
|
|
189 |
|
Straight-lined revenues associated with fixed escalators |
(20) - (10) |
|
|
47 |
|
Acquisitions and builds(b) |
|
160 |
|
|
|
90 |
|
Other |
|
— |
|
|
|
— |
|
Total GAAP site rental
revenues |
$3,468 -
$3,498 |
|
$ |
3,233 |
|
|
|
|
|
Year-over-year
changes in revenue: |
|
|
|
Reported GAAP site
rental revenues |
|
7.7 |
% |
|
|
7.1 |
% |
Organic Contribution to
Site Rental Revenues(d)(e) |
|
4.8 |
%
(f) |
|
|
6.5 |
% |
|
(a)
Includes revenues from amortization of prepaid rent in accordance
with GAAP. |
(b) The
financial impact of acquisitions, as measured by the initial
contribution, and tower builds is excluded from Organic
Contribution to Site Rental Revenues until the one-year anniversary
of the acquisition or build. |
(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 and Other Calculations" herein. |
(e)
Calculated as the percentage change from prior year site rental
revenues exclusive of straight-lined associated with fixed
escalations compared to Organic Contribution to Site Rental
Revenues for the current period. |
(f)
Calculated based on midpoint of Full Year 2017 Outlook. |
(g)
Additional information regarding Crown Castle's site rental
revenues including projected revenue from customer licenses, tenant
non-renewals, straight-lined revenues and prepaid rent is available
in Crown Castle's quarterly Supplemental Information Package posted
in the Investors section of its website. |
Components of Historical Interest
Expense and Amortization of Deferred Financing Costs:
|
For the Three Months Ended |
(in millions) |
December 31, 2016 |
|
December 31, 2015 |
Interest expense on
debt obligations |
$ |
126.3 |
|
|
$ |
123.6 |
|
Amortization of
deferred financing costs and adjustments on long-term debt,
net |
4.6 |
|
|
5.6 |
|
Other, net |
(1.5 |
) |
|
(0.8 |
) |
Interest expense and
amortization of deferred financing costs |
$ |
129.4 |
|
|
$ |
128.3 |
|
Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing
Costs:
|
Q1 2017 |
|
Full Year
2017 |
(in millions) |
Outlook |
|
Outlook |
Interest expense on
debt obligations |
$ |
131 |
|
|
to |
|
$ |
133 |
|
|
$ |
534 |
|
|
to |
|
$ |
549 |
|
Amortization of
deferred financing costs and adjustments on long-term debt,
net |
$ |
4 |
|
|
to |
|
$ |
7 |
|
|
$ |
17 |
|
|
to |
|
$ |
21 |
|
Other, net |
$ |
(1 |
) |
|
to |
|
$ |
(1 |
) |
|
$ |
(6 |
) |
|
to |
|
$ |
(4 |
) |
Interest
expense and amortization of deferred financing costs |
$ |
132 |
|
|
to |
|
$ |
137 |
|
|
$ |
540 |
|
|
to |
|
$ |
570 |
|
Debt balances and maturity dates as of
December 31, 2016 are as follows:
(in
millions) |
Face Value |
|
Final Maturity |
Bank debt - variable
rate: |
|
|
|
2016
Revolver |
$ |
— |
|
|
Jan.
2021 |
2016 Term
Loan A |
1,962.5 |
|
Jan.
2021 |
Total bank debt |
1,962.5 |
|
|
Securitized debt -
fixed rate: |
|
|
|
Secured
Notes, Series 2009-1, Class A-1(a) |
52.4 |
|
Aug.
2019 |
Secured
Notes, Series 2009-1, Class A-2(a) |
70.0 |
|
Aug.
2029 |
Tower
Revenue Notes, Series 2010-3(b) |
1,250.0 |
|
Jan.
2040 |
Tower
Revenue Notes, Series 2010-6(b) |
1,000.0 |
|
Aug.
2040 |
Tower
Revenue Notes, Series 2015-1(b) |
300.0 |
|
May
2042 |
Tower
Revenue Notes, Series 2015-2(b) |
700.0 |
|
May
2045 |
Total
securitized debt |
3,372.4 |
|
|
Bonds - fixed
rate: |
|
|
|
5.250% Senior Notes |
1,650.0 |
|
Jan.
2023 |
3.849%
Secured Notes |
1,000.0 |
|
Apr.
2023 |
4.875%
Senior Notes |
850.0 |
|
Apr.
2022 |
3.400%
Senior Notes |
850.0 |
|
Feb.
2021 |
4.450%
Senior Notes |
900.0 |
|
Feb.
2026 |
3.700%
Senior Notes |
750.0 |
|
June
2026 |
2.250%
Senior Notes |
700.0 |
|
Sept.
2021 |
Total
bonds |
6,700.0 |
|
|
Capital leases and
other obligations |
226.8 |
|
|
Various |
Total Debt(c) |
$ |
12,261.7 |
|
|
|
Less:
Cash and Cash Equivalents(d) |
$ |
567.6 |
|
|
|
Net Debt |
$ |
11,694.1 |
|
|
|
|
(a) The Senior Secured Notes, Series 2009-1, Class A-1
principal amortizes during the period beginning January 2010 and
ending in 2019 and the Senior Secured Notes, 2009-1, Class A-2
principal amortizes during the period beginning in 2019 and ending
in 2029. |
(b) The Senior Secured Tower Revenue Notes, Series
2010-3 and 2010-6 have anticipated repayment dates in 2020. The
Senior Secured Tower Revenue Notes, Series 2015-1 and 2015-2 have
anticipated repayment dates in 2022 and 2025, respectively. |
(c) After giving effect to the closing of the FiberNet
acquisition, the outstanding borrowings under the 2016 Revolver
total approximately $1.1 billion. |
(d) Excludes restricted cash. |
Net Debt to Last Quarter Annualized Adjusted EBITDA is
computed as follows:
(in millions) |
For the Three Months Ended December 31, 2016 |
Total face value of
debt(a) |
$ |
12,261.7 |
|
Ending cash and cash
equivalents(a)(b) |
567.6 |
|
Total Net Debt |
$ |
11,694.1 |
|
|
|
Adjusted EBITDA for the
three months ended December 31, 2016 |
$ |
574.6 |
|
Last quarter annualized
adjusted EBITDA |
2,298.5 |
|
Net Debt to
Last Quarter Annualized Adjusted EBITDA |
5.1 |
x |
|
(a) After
giving effect to the closing of the FiberNet acquisition, the total
face value of debt and ending cash and cash equivalents for the
three months ended December 31, 2016 was $13.3 billion and $116
million, respectively. See full year 2017 outlook for further
discussion of the impact of the FiberNet acquisition. |
(b)
Excludes restricted cash. |
Components of Capital
Expenditures:
|
For the Three Months Ended |
(in millions) |
December 31, 2016 |
|
December 31, 2015 |
|
Towers |
Small Cells |
Other |
Total |
|
Towers |
Small Cells |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases
of land interests |
$ |
16.7 |
|
$ |
— |
|
$ |
— |
|
$ |
16.7 |
|
|
$ |
22.7 |
|
$ |
— |
|
$ |
— |
|
$ |
22.7 |
|
Wireless
infrastructure construction and improvements |
77.0 |
|
123.9 |
|
— |
|
200.9 |
|
|
100.3 |
|
98.2 |
|
— |
|
198.5 |
|
Sustaining: |
|
|
|
|
|
|
|
|
|
Capital
improvement and corporate |
16.9 |
|
6.3 |
|
18.9 |
|
42.1 |
|
|
14.3 |
|
3.5 |
|
11.7 |
|
29.5 |
|
Total |
$ |
110.6 |
|
$ |
130.2 |
|
$ |
18.9 |
|
$ |
259.7 |
|
|
$ |
137.3 |
|
$ |
101.7 |
|
$ |
11.7 |
|
$ |
250.7 |
|
Cautionary Language Regarding
Forward-Looking Statements
This press release contains forward-looking
statements and information that are based on our management's
current expectations. Such statements include our Outlook and
plans, projections, and estimates regarding (1) potential benefits,
returns and shareholder value which may be derived from our
business, assets, investments, dividends and acquisitions
(including the FiberNet acquisition), including on a long-term
basis, (2) our strategy, strategic position and strength of our
business, (3) carrier network investments and upgrades, and the
benefits which may be derived therefrom, (4) demand for mobile data
and wireless connectivity and the benefits which may be derived
therefrom, (5) our dividends, including our dividend plans and the
amount and growth of our dividends, (6) leasing activity, (7) our
investments, including in towers, small cells and other assets, and
the potential growth, returns and benefits therefrom, (8) the
contribution of FiberNet to our results, (9) demand for our
wireless infrastructure and services, (10) our growth and long-term
prospects, (11) tenant non-renewals, including the impact and
timing thereof, (12) capital expenditures, including sustaining
capital expenditures, (13) straight-line adjustments, (14)
expenses, (15) site rental revenues, (16) site rental cost of
operations, (17) site rental gross margin and network services
gross margin, (18) net income (loss), (19) Adjusted EBITDA, (20)
interest expense and amortization of deferred financing costs, (21)
FFO, (22) AFFO, (23) Organic Contribution to Site Rental Revenues
and Organic Contribution to Site Rental Revenue growth, (24) our
common shares outstanding and (25) the utility of certain financial
measures, including non-GAAP financial measures. Such
forward-looking statements are subject to certain risks,
uncertainties and assumptions prevailing market conditions and the
following:
- Our business depends on the demand for our wireless
infrastructure, driven primarily by demand for wireless
connectivity, and we may be adversely affected by any slowdown in
such demand. Additionally, a reduction in carrier network
investment may materially and adversely affect our business
(including reducing demand for new tenant additions and network
services).
- A substantial portion of our revenues is derived from a small
number of customers, and the loss, consolidation or financial
instability of any of our limited number of customers may
materially decrease revenues or reduce demand for our wireless
infrastructure and network services.
- The business model for our small cell operations contains
differences from our traditional site rental business, resulting in
different operational risks. If we do not successfully
operate that business model or identify or manage those operational
risks, such operations may produce results that are less than
anticipated.
- Our substantial level of indebtedness could adversely affect
our ability to react to changes in our business, and the terms of
our debt instruments limit our ability to take a number of actions
that our management might otherwise believe to be in our best
interests. In addition, if we fail to comply with our
covenants, our debt could be accelerated.
- We have a substantial amount of indebtedness. In the event we
do not repay or refinance such indebtedness, we could face
substantial liquidity issues and might be required to issue equity
securities or securities convertible into equity securities, or
sell some of our assets to meet our debt payment obligations.
- Sales or issuances of a substantial number of shares of our
common stock may adversely affect the market price of our common
stock.
- As a result of competition in our industry, we may find it more
difficult to achieve favorable rental rates on our new or renewing
tenant leases.
- New technologies may reduce demand for our wireless
infrastructure or negatively impact our revenues.
- The expansion and development of our business, including
through acquisitions, increased product offerings or other
strategic growth opportunities, may cause disruptions in our
business, which may have an adverse effect on our business,
operations or financial results.
- If we fail to retain rights to our wireless infrastructure,
including the land interests under our towers, our business may be
adversely affected.
- Our network services business has historically experienced
significant volatility in demand, which reduces the predictability
of our results.
- New wireless technologies may not deploy or be adopted by
customers as rapidly or in the manner projected.
- If we fail to comply with laws and regulations which regulate
our business and which may change at any time, we may be fined or
even lose our right to conduct some of our business.
- If radio frequency emissions from wireless handsets or
equipment on our wireless infrastructure are demonstrated to cause
negative health effects, potential future claims could adversely
affect our operations, costs or revenues.
- Certain provisions of our 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 that could adversely
affect our business, operations, and reputation.
- Future dividend payments to our stockholders will reduce the
availability of our cash on hand available to fund future
discretionary investments, and may result in a need to incur
indebtedness or issue equity securities to fund growth
opportunities. In such event, the then current economic, credit
market or equity market conditions will impact the availability or
cost of such financing, which may hinder our ability to grow our
per share results of operations.
- Remaining qualified to be taxed as a REIT involves highly
technical and complex provisions of the US Internal Revenue
Code. Failure to remain qualified as a REIT would result in
our inability to deduct dividends to stockholders when computing
our taxable income, which would reduce our available cash.
- Complying with REIT requirements, including the 90%
distribution requirement, may limit our flexibility or cause us to
forgo otherwise attractive opportunities, including certain
discretionary investments and potential financing
alternatives.
- We have limited experience operating as a REIT. Our failure to
successfully operate as a REIT may adversely affect our financial
condition, cash flow, the per share trading price of our common
stock, or our ability to satisfy debt service obligations.
- REIT related ownership limitations and transfer restrictions
may prevent or restrict certain transfers of our capital
stock.
Should one or more of these or other risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expected.
More information about potential risk factors which could affect
our results is included in our filings with the SEC. As used
in this release, the term "including," and any variation thereof,
means "including without limitation."
CROWN CASTLE INTERNATIONAL
CORP.CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)(in thousands, except share amounts)
|
December 31, 2016 |
|
December 31, 2015 |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
567,599 |
|
|
$ |
178,810 |
|
Restricted cash |
124,547 |
|
|
130,731 |
|
Receivables, net |
373,532 |
|
|
313,296 |
|
Prepaid
expenses |
128,721 |
|
|
133,194 |
|
Other
current assets |
130,362 |
|
|
225,214 |
|
Total
current assets |
1,324,761 |
|
|
981,245 |
|
Deferred site rental
receivables |
1,317,658 |
|
|
1,306,408 |
|
Property and equipment,
net |
9,805,315 |
|
|
9,580,057 |
|
Goodwill |
5,757,676 |
|
|
5,513,551 |
|
Other intangible
assets, net |
3,650,072 |
|
|
3,779,915 |
|
Long-term prepaid rent
and other assets, net |
819,610 |
|
|
775,790 |
|
Total
assets |
$ |
22,675,092 |
|
|
$ |
21,936,966 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
188,516 |
|
|
$ |
159,629 |
|
Accrued
interest |
97,019 |
|
|
66,975 |
|
Deferred
revenues |
353,005 |
|
|
322,623 |
|
Other
accrued liabilities |
221,066 |
|
|
199,923 |
|
Current
maturities of debt and other obligations |
101,749 |
|
|
106,219 |
|
Total
current liabilities |
961,355 |
|
|
855,369 |
|
Debt and other
long-term obligations |
12,069,393 |
|
|
12,043,740 |
|
Other long-term
liabilities |
2,087,229 |
|
|
1,948,636 |
|
Total
liabilities |
15,117,977 |
|
|
14,847,745 |
|
Commitments and
contingencies |
|
|
|
CCIC stockholders'
equity: |
|
|
|
Common
stock, $.01 par value; 600,000,000 shares authorized; shares issued
and outstanding: December 31, 2016—360,536,659 and
December 31, 2015—333,771,660 |
3,605 |
|
|
3,338 |
|
4.50%
Mandatory Convertible Preferred Stock, Series A, $.01 par value;
20,000,000 shares authorized; shares issued and outstanding:
December 31, 2016—0 and December 31, 2015—9,775,000; aggregate
liquidation value: December 31, 2016—0 and December 31,
2015—$977,500 |
— |
|
|
98 |
|
Additional paid-in capital |
10,938,236 |
|
|
9,548,580 |
|
Accumulated other comprehensive income (loss) |
(5,888 |
) |
|
(4,398 |
) |
Dividends/distributions in excess of earnings |
(3,378,838 |
) |
|
(2,458,397 |
) |
Total
equity |
7,557,115 |
|
|
7,089,221 |
|
Total
liabilities and equity |
$ |
22,675,092 |
|
|
$ |
21,936,966 |
|
CROWN CASTLE INTERNATIONAL
CORP.CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS (UNAUDITED)(in thousands, except share and per
share amounts)
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Net revenues: |
|
|
|
|
|
|
|
Site
rental |
$ |
817,381 |
|
|
$ |
785,336 |
|
|
$ |
3,233,307 |
|
|
$ |
3,018,413 |
|
Network
services and other |
215,035 |
|
|
160,500 |
|
|
687,918 |
|
|
645,438 |
|
Net
revenues |
1,032,416 |
|
|
945,836 |
|
|
3,921,225 |
|
|
3,663,851 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Costs of
operations (exclusive of depreciation, amortization and
accretion): |
|
|
|
|
|
|
|
Site
rental |
261,127 |
|
|
247,625 |
|
|
1,023,350 |
|
|
963,869 |
|
Network
services and other |
131,105 |
|
|
94,381 |
|
|
417,171 |
|
|
357,557 |
|
General
and administrative |
92,122 |
|
|
87,042 |
|
|
371,031 |
|
|
310,921 |
|
Asset
write-down charges |
6,202 |
|
|
13,817 |
|
|
34,453 |
|
|
33,468 |
|
Acquisition and integration costs |
5,994 |
|
|
3,677 |
|
|
17,453 |
|
|
15,678 |
|
Depreciation, amortization and accretion |
273,826 |
|
|
269,558 |
|
|
1,108,551 |
|
|
1,036,178 |
|
Total
operating expenses |
770,376 |
|
|
716,100 |
|
|
2,972,009 |
|
|
2,717,671 |
|
Operating income
(loss) |
262,040 |
|
|
229,736 |
|
|
949,216 |
|
|
946,180 |
|
Interest expense and
amortization of deferred financing costs |
(129,376 |
) |
|
(128,346 |
) |
|
(515,032 |
) |
|
(527,128 |
) |
Gains (losses) on
retirement of long-term obligations |
— |
|
|
— |
|
|
(52,291 |
) |
|
(4,157 |
) |
Interest income |
342 |
|
|
736 |
|
|
796 |
|
|
1,906 |
|
Other income
(expense) |
(4,212 |
) |
|
(1,482 |
) |
|
(8,835 |
) |
|
57,028 |
|
Income (loss) from
continuing operations before income taxes |
128,794 |
|
|
100,644 |
|
|
373,854 |
|
|
473,829 |
|
Benefit (provision) for
income taxes |
(4,084 |
) |
|
42,077 |
|
|
(16,881 |
) |
|
51,457 |
|
Income (loss) from
continuing operations |
124,710 |
|
|
142,721 |
|
|
356,973 |
|
|
525,286 |
|
Discontinued
operations: |
|
|
|
|
|
|
|
Income
(loss) from discontinued operations, net of tax |
— |
|
|
(1,659 |
) |
|
— |
|
|
999,049 |
|
Net income (loss) |
124,710 |
|
|
141,062 |
|
|
356,973 |
|
|
1,524,335 |
|
Less: Net income (loss)
attributable to the noncontrolling interest |
— |
|
|
— |
|
|
— |
|
|
3,343 |
|
Net income (loss)
attributable to CCIC stockholders |
124,710 |
|
|
141,062 |
|
|
356,973 |
|
|
1,520,992 |
|
Dividends on preferred
stock |
— |
|
|
(10,997 |
) |
|
(32,991 |
) |
|
(43,988 |
) |
Net income (loss)
attributable to CCIC common stockholders |
$ |
124,710 |
|
|
$ |
130,065 |
|
|
$ |
323,982 |
|
|
$ |
1,477,004 |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Income
(loss) from continuing operations, basic |
$ |
0.35 |
|
|
$ |
0.39 |
|
|
$ |
0.95 |
|
|
$ |
1.45 |
|
Income
(loss) from discontinued operations, basic |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2.99 |
|
Net
income (loss) attributable to CCIC common stockholders, basic |
$ |
0.35 |
|
|
$ |
0.39 |
|
|
$ |
0.95 |
|
|
$ |
4.44 |
|
Income
(loss) from continuing operations, diluted |
$ |
0.35 |
|
|
$ |
0.39 |
|
|
$ |
0.95 |
|
|
$ |
1.44 |
|
Income
(loss) from discontinued operations, diluted |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2.98 |
|
Net
income (loss) attributable to CCIC common stockholders,
diluted |
$ |
0.35 |
|
|
$ |
0.39 |
|
|
$ |
0.95 |
|
|
$ |
4.42 |
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding (in thousands): |
|
|
|
|
|
|
|
Basic |
352,116 |
|
|
333,107 |
|
|
340,349 |
|
|
333,002 |
|
Diluted |
352,878 |
|
|
334,320 |
|
|
340,879 |
|
|
334,062 |
|
CROWN CASTLE INTERNATIONAL
CORP.CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS (UNAUDITED)(in thousands)
|
Twelve Months Ended December 31, |
|
|
2016 |
|
2015 |
|
Cash flows from
operating activities: |
|
|
|
|
Net income (loss) from
continuing operations |
$ |
356,973 |
|
|
$ |
525,286 |
|
|
Adjustments to
reconcile net income (loss) from continuing operations to net cash
provided by (used for) operating activities: |
|
|
|
|
Depreciation, amortization and accretion |
1,108,551 |
|
|
1,036,178 |
|
|
Gains
(losses) on retirement of long-term obligations |
52,291 |
|
|
4,157 |
|
|
Gains
(losses) on settled swaps |
2,608 |
|
|
(54,475 |
) |
|
Amortization of deferred financing costs and other non-cash
interest |
14,333 |
|
|
37,126 |
|
|
Stock-based compensation expense |
79,338 |
|
|
60,773 |
|
|
Asset
write-down charges |
34,453 |
|
|
33,468 |
|
|
Deferred
income tax benefit (provision) |
8,603 |
|
|
(60,618 |
) |
|
Other
adjustments, net |
2,451 |
|
|
(8,915 |
) |
|
Changes
in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
|
Increase
(decrease) in liabilities |
236,642 |
|
|
320,625 |
|
|
Decrease
(increase) in assets |
(113,979 |
) |
|
(99,580 |
) |
|
Net cash
provided by (used for) operating activities |
1,782,264 |
|
|
1,794,025 |
|
|
Cash flows from
investing activities: |
|
|
|
|
Payments
for acquisition of businesses, net of cash acquired |
(556,854 |
) |
|
(1,102,179 |
) |
|
Capital
expenditures |
(873,883 |
) |
|
(908,892 |
) |
|
Net
receipts from settled swaps |
8,141 |
|
|
54,475 |
|
|
Other
investing activities, net |
12,364 |
|
|
(3,138 |
) |
|
Net cash
provided by (used for) investing activities |
(1,410,232 |
) |
|
(1,959,734 |
) |
|
Cash flows from
financing activities: |
|
|
|
|
Proceeds
from issuance of long-term debt |
5,201,010 |
|
|
1,000,000 |
|
|
Principal
payments on debt and other long-term obligations |
(95,787 |
) |
|
(102,866 |
) |
|
Purchases
and redemptions of long-term debt |
(4,044,834 |
) |
|
(1,069,337 |
) |
|
Borrowings under revolving credit facility |
3,440,000 |
|
|
1,790,000 |
|
|
Payments
under revolving credit facility |
(4,565,000 |
) |
|
(1,360,000 |
) |
|
Payments
for financing costs |
(41,533 |
) |
|
(19,642 |
) |
|
Net
proceeds from issuance of capital stock |
1,325,865 |
|
|
— |
|
|
Purchases
of capital stock |
(24,936 |
) |
|
(29,657 |
) |
|
Dividends/distributions paid on common stock |
(1,239,158 |
) |
|
(1,116,444 |
) |
|
Dividends
paid on preferred stock |
(43,988 |
) |
|
(43,988 |
) |
|
Net
(increase) decrease in restricted cash |
(7,931 |
) |
|
16,458 |
|
|
Net cash
provided by (used for) financing activities |
(96,292 |
) |
|
(935,476 |
) |
|
Net increase
(decrease) in cash and cash equivalents - continuing
operations |
275,740 |
|
|
(1,101,185 |
) |
|
Discontinued
operations: |
|
|
|
|
Net cash
provided by (used for) operating activities |
— |
|
|
2,700 |
|
|
Net cash
provided by (used for) investing activities |
113,150 |
|
|
1,103,577 |
|
|
Net increase
(decrease) in cash and cash equivalents - discontinued
operations |
113,150 |
|
|
1,106,277 |
|
|
Effect of
exchange rate changes |
(101 |
) |
|
(1,902 |
) |
|
Cash and cash equivalents at beginning of
period |
178,810 |
|
|
175,620 |
|
(a) |
Cash and cash
equivalents at end of period |
$ |
567,599 |
|
|
$ |
178,810 |
|
|
Supplemental
disclosure of cash flow information: |
|
|
|
|
Interest
paid |
470,655 |
|
|
489,970 |
|
|
Income
taxes paid |
13,821 |
|
|
28,771 |
|
|
_______________ |
(a)
Inclusive of cash and cash equivalents included in discontinued
operations. |
CROWN CASTLE INTERNATIONAL
CORP.SEGMENT OPERATING RESULTS
(UNAUDITED)(in thousands)
SEGMENT OPERATING RESULTS |
|
Three Months Ended December 31, 2016 |
|
Three Months Ended December 31, 2015 |
|
Towers |
|
Small Cells |
|
Other |
|
Consolidated Total |
|
Towers |
|
Small Cells |
|
Other |
|
Consolidated Total |
Segment site rental
revenues |
$ |
712,549 |
|
|
$ |
104,832 |
|
|
|
|
$ |
817,381 |
|
|
$ |
693,898 |
|
|
$ |
91,438 |
|
|
|
|
$ |
785,336 |
|
Segment network
services and other revenue |
169,647 |
|
|
45,388 |
|
|
|
|
215,035 |
|
|
145,972 |
|
|
14,528 |
|
|
|
|
160,500 |
|
Segment revenues |
882,196 |
|
|
150,220 |
|
|
|
|
1,032,416 |
|
|
839,870 |
|
|
105,966 |
|
|
|
|
945,836 |
|
Segment site rental
cost of operations |
214,878 |
|
|
38,057 |
|
|
|
|
252,935 |
|
|
206,449 |
|
|
33,377 |
|
|
|
|
239,826 |
|
Segment network
services and other cost of operations |
95,289 |
|
|
34,207 |
|
|
|
|
129,496 |
|
|
79,861 |
|
|
13,128 |
|
|
|
|
92,989 |
|
Segment cost of
operations(a) |
310,167 |
|
|
72,264 |
|
|
|
|
382,431 |
|
|
286,310 |
|
|
46,505 |
|
|
|
|
332,815 |
|
Segment site rental
gross margin(b) |
497,671 |
|
|
66,775 |
|
|
|
|
564,446 |
|
|
487,449 |
|
|
58,061 |
|
|
|
|
545,510 |
|
Segment network
services and other gross margin(b) |
74,358 |
|
|
11,181 |
|
|
|
|
85,539 |
|
|
66,111 |
|
|
1,400 |
|
|
|
|
67,511 |
|
Segment general and
administrative expenses(a) |
24,574 |
|
|
14,956 |
|
|
35,838 |
|
|
75,368 |
|
|
23,654 |
|
|
12,715 |
|
|
36,855 |
|
|
73,224 |
|
Segment operating
profit(b) |
547,455 |
|
|
63,000 |
|
|
(35,838 |
) |
|
574,617 |
|
|
529,906 |
|
|
46,746 |
|
|
(36,855 |
) |
|
539,797 |
|
Stock-based
compensation expense |
|
|
|
|
21,241 |
|
|
21,241 |
|
|
|
|
|
|
17,866 |
|
|
17,866 |
|
Depreciation,
amortization and accretion |
|
|
|
|
273,826 |
|
|
273,826 |
|
|
|
|
|
|
269,558 |
|
|
269,558 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
129,376 |
|
|
129,376 |
|
|
|
|
|
|
128,346 |
|
|
128,346 |
|
Other (income) expenses
to reconcile to income (loss) from continuing operations before
income taxes(c) |
|
|
|
|
21,380 |
|
|
21,380 |
|
|
|
|
|
|
23,383 |
|
|
23,383 |
|
Income (loss) from
continuing operations before income taxes |
|
|
|
|
|
|
$ |
128,794 |
|
|
|
|
|
|
|
|
$ |
100,644 |
|
|
(a)
Segment cost of operations exclude (1) stock-based compensation
expense of $4.5 million and $4.0 million for the three months ended
December 31, 2016 and 2015, respectively and (2) prepaid lease
purchase price adjustments of $5.3 million and $5.1 million for the
three months ended December 31, 2016 and 2015,
respectively. Segment general and administrative expenses
exclude stock-based compensation expense of $16.8 million and $13.8
million for the three months ended December 31, 2016 and 2015,
respectively. |
(b) See
"Non-GAAP Financial Measures and Other Calculations" herein for a
discussion of our definitions of segment site rental gross margin,
segment network service and other gross margin and segment
operating profit. |
(c) See
condensed consolidated statement of operations for further
information. |
SEGMENT OPERATING RESULTS |
|
Twelve Months Ended December 31, 2016 |
|
Twelve Months Ended December 31, 2015 |
|
Towers |
|
Small Cells |
|
Other |
|
Consolidated Total |
|
Towers |
|
Small Cells |
|
Other |
|
Consolidated Total |
Segment site rental
revenues |
$ |
2,830,708 |
|
|
$ |
402,599 |
|
|
|
|
$ |
3,233,307 |
|
|
$ |
2,734,045 |
|
|
$ |
284,368 |
|
|
|
|
$ |
3,018,413 |
|
Segment network
services and other revenue |
603,689 |
|
|
84,229 |
|
|
|
|
687,918 |
|
|
591,655 |
|
|
53,783 |
|
|
|
|
645,438 |
|
Segment revenues |
3,434,397 |
|
|
486,828 |
|
|
|
|
3,921,225 |
|
|
3,325,700 |
|
|
338,151 |
|
|
|
|
3,663,851 |
|
Segment site rental
cost of operations |
840,209 |
|
|
147,459 |
|
|
|
|
987,668 |
|
|
827,175 |
|
|
107,195 |
|
|
|
|
934,370 |
|
Segment network
services and other cost of operations |
344,595 |
|
|
64,859 |
|
|
|
|
409,454 |
|
|
309,025 |
|
|
43,162 |
|
|
|
|
352,187 |
|
Segment cost of
operations(a) |
1,184,804 |
|
|
212,318 |
|
|
|
|
1,397,122 |
|
|
1,136,200 |
|
|
150,357 |
|
|
|
|
1,286,557 |
|
Segment site rental
gross margin(b) |
1,990,499 |
|
|
255,140 |
|
|
|
|
2,245,639 |
|
|
1,906,870 |
|
|
177,173 |
|
|
|
|
2,084,043 |
|
Segment network
services and other gross margin(b) |
259,094 |
|
|
19,370 |
|
|
|
|
278,464 |
|
|
282,630 |
|
|
10,621 |
|
|
|
|
293,251 |
|
Segment general and
administrative expenses(a) |
92,903 |
|
|
60,676 |
|
|
143,001 |
|
|
296,580 |
|
|
91,899 |
|
|
38,379 |
|
|
127,833 |
|
|
258,111 |
|
Segment operating
profit(b) |
2,156,690 |
|
|
213,834 |
|
|
(143,001 |
) |
|
2,227,523 |
|
|
2,097,601 |
|
|
149,415 |
|
|
(127,833 |
) |
|
2,119,183 |
|
Stock-based
compensation expense |
|
|
|
|
96,538 |
|
|
96,538 |
|
|
|
|
|
|
67,148 |
|
|
67,148 |
|
Depreciation,
amortization and accretion |
|
|
|
|
1,108,551 |
|
|
1,108,551 |
|
|
|
|
|
|
1,036,178 |
|
|
1,036,178 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
515,032 |
|
|
515,032 |
|
|
|
|
|
|
527,128 |
|
|
527,128 |
|
Other income (expenses)
to reconcile to income (loss) from continuing operations before
income taxes(c) |
|
|
|
|
133,548 |
|
|
133,548 |
|
|
|
|
|
|
14,900 |
|
|
14,900 |
|
Income (loss) from
continuing operations before income taxes |
|
|
|
|
|
|
$ |
373,854 |
|
|
|
|
|
|
|
|
$ |
473,829 |
|
|
(a)
Segment cost of operations exclude (1) stock-based compensation
expense of $22.1 million and $14.3 million for the twelve months
ended December 31, 2016 and 2015, respectively and (2) prepaid
lease purchase price adjustments of $21.3 million and $20.5 million
for the twelve months ended December 31, 2016 and 2015,
respectively. Segment general and administrative expenses exclude
stock-based compensation expense of $74.5 million and $52.8 million
for the twelve months ended December 31, 2016 and 2015,
respectively. |
(b)
See "Non-GAAP Financial Measures and Other Calculations" herein for
a discussion of our definitions of segment site rental gross
margin, segment network service and other gross margin and segment
operating profit. |
(c)
See condensed consolidated statement of operations for further
information. |
Contacts: Dan Schlanger, CFOSon Nguyen, VP & TreasurerCrown
Castle International Corp.713-570-3050
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