Crown Castle International Corp. (NYSE:CCI) ("Crown Castle") today
reported results for the quarter and year ended December 31,
2017.
"Our solid full year 2017 results and increased
Outlook for 2018 reflect the strong fundamentals across our
business as we remain focused on consistently delivering value to
our customers and shareholders," stated Jay Brown, Crown Castle’s
Chief Executive Officer. "By all measures, 2017 was a tremendous
year for Crown Castle. We delivered 8% growth in dividends
per share, at the high end of our long-term annual dividend growth
target, while making significant investments to strategically
position Crown Castle to remain the leading shared infrastructure
provider in the U.S. In the near-term, we remain excited by the
increasing investment activity by our customers that is translating
to an expected increase in new leasing activity across towers,
small cells and fiber solutions in 2018. This level of
leasing activity demonstrates the attractiveness of our unique
portfolio of assets, which we believe are well positioned to
benefit from the continued growth in demand for data. As a
result, we remain confident in our ability to grow our cash flows
and deliver on our 7% to 8% annual growth target in dividends per
share."
RESULTS FOR THE QUARTERThe
table below sets forth select financial results for the three month
period ended December 31, 2017 and December 31, 2016. For
further information, refer to the financial statements and
non-GAAP, segment and other calculation reconciliations included in
this press release.
(in millions) |
Actual |
MidpointQ4 2017Outlook(b) |
ActualCompared toOutlook |
Q4 2017 |
Q4 2016 |
$ Change |
% Change |
Site rental
revenues |
$ |
1,051 |
$ |
817 |
+$ |
234 |
+29 |
% |
$ |
907 |
+$ |
144 |
Net income (loss) |
$ |
98 |
$ |
125 |
-$ |
27 |
-22 |
% |
$ |
104 |
-$ |
6 |
Adjusted EBITDA(a) |
$ |
707 |
$ |
575 |
+$ |
132 |
+23 |
% |
$ |
627 |
+$ |
81 |
AFFO(a)(c) |
$ |
512 |
$ |
406 |
+$ |
106 |
+26 |
% |
$ |
433 |
+$ |
79 |
Weighted-average common
shares outstanding - diluted |
|
408 |
|
353 |
|
+55 |
+16 |
% |
|
408 |
|
— |
Note: Figures may not
tie due to rounding.(a) See reconciliation of this non-GAAP
financial measure to net income (loss) and definition included
herein.(b) As issued on October 18, 2017.(c) Attributable to CCIC
common stockholders. |
|
|
|
|
|
|
|
|
|
|
|
|
HIGHLIGHTS FROM THE QUARTER
- Lightower
Acquisition. On November 1, 2017, Crown Castle
completed its previously announced acquisition of LTS Group
Holdings LLC ("Lightower"). When compared to the prior fourth
quarter 2017 Outlook issued on October 18, 2017, which did not
include any contribution from Lightower, the acquisition
contributed approximately $140 million, $83 million, and $79
million to site rental revenues, Adjusted EBITDA and AFFO,
respectively. Excluding these Lightower contributions, our
results would have been within the ranges provided in the prior
Outlook for site rental revenues, Adjusted EBITDA and AFFO.
- Site rental
revenues. Site rental revenues grew approximately
29%, or $234 million, from fourth quarter 2016 to fourth quarter
2017, inclusive of approximately $44 million in Organic
Contribution to Site Rental Revenues plus $192 million in
contributions from acquisitions and other items, less a $2 million
reduction in straight-lined revenues. The $44 million in
Organic Contribution to Site Rental Revenues represents
approximately 5.5% growth, comprised of approximately 8% growth
from new leasing activity and contracted tenant escalations, net of
approximately 2.5% from tenant non-renewals. Site rental
revenues for fourth quarter 2017 benefited from approximately $5
million associated with certain long-term customer agreements
signed during the period that include a combination of contracted
new leasing activity and term extensions on existing leases.
- Net income.
Net income for fourth quarter 2017 was $98 million.
- Adjusted EBITDA and
AFFO. When compared to the prior fourth quarter 2017
Outlook, Adjusted EBITDA and AFFO for fourth quarter 2017 were
impacted by approximately $10 million of higher costs associated
with additional accruals for annual bonuses relating to full year
2017 results, and severance related expenses.
- Capital expenditures and
acquisitions. Capital expenditures during the
quarter were approximately $377 million, comprised of approximately
$15 million of land purchases, approximately $25 million of
sustaining capital expenditures and approximately $337 million of
revenue generating capital expenditures.
- Common stock
dividend. During the quarter, Crown Castle paid
common stock dividends of approximately $427 million in the
aggregate, or $1.05 per common share, an increase of approximately
11% on a per share basis compared to the same period a year
ago.
RESULTS FOR THE YEARThe table
below sets forth select financial results for the year ended
December 31, 2017. For further information, refer to the
financial statements and non-GAAP and other calculation
reconciliations included in this press release.
(in millions) |
Actual |
MidpointFull Year2017Outlook(b) |
ActualCompared toOutlook |
|
2017 |
|
2016 |
$ Change |
% Change |
Site rental
revenues |
$ |
3,669 |
$ |
3,233 |
+$ |
436 |
+13 |
% |
$ |
3,525 |
+$ |
144 |
Net income (loss) |
$ |
445 |
$ |
357 |
+$ |
88 |
+25 |
% |
$ |
451 |
-$ |
6 |
Adjusted EBITDA(a) |
$ |
2,482 |
$ |
2,228 |
+$ |
254 |
+11 |
% |
$ |
2,402 |
+$ |
81 |
AFFO(a)(c) |
$ |
1,860 |
$ |
1,610 |
+$ |
250 |
+16 |
% |
$ |
1,782 |
+$ |
79 |
Weighted-average common
shares outstanding - diluted |
|
383 |
|
341 |
|
+42 |
+12 |
% |
|
383 |
|
— |
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 18, 2017.(c) Attributable to CCIC common
stockholders |
|
|
|
|
|
|
|
|
|
|
|
|
HIGHLIGHTS FROM THE YEAR
- Site rental
revenues. Site rental revenues grew approximately
13%, or $436 million, from full year 2016 to full year 2017,
inclusive of approximately $160 million in Organic Contribution to
Site Rental Revenues plus $323 million in contributions from
acquisitions and other items, less a $47 million reduction in
straight-line revenues. The $160 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 year
were approximately $1.2 billion, comprised of approximately $81
million of land purchases, approximately $85 million of sustaining
capital expenditures and approximately $1.1 billion of revenue
generating capital expenditures.
- Common stock
dividend. During the year, Crown Castle paid common
stock dividends of approximately $1.5 billion in the aggregate, or
$3.90 per common share, an increase of approximately 8% on a per
share basis compared to the same period a year ago.
"Our positive 2017 results and increased full
year 2018 Outlook are a result of great execution by our team as
they continue to deliver for our customers who are utilizing our
unique portfolio of infrastructure assets to meet the robust
underlying growth in data," stated Dan Schlanger, Crown Castle's
Chief Financial Officer. "Looking back, we had a very
successful 2017. We deployed approximately $9 billion of
capital to secure premium metro fiber assets in top markets where
we see the greatest long-term demand for small cells and fiber
solutions, and improved our financial flexibility by increasing the
average maturity of our debt and lowering our average interest
rate, all while delivering an 8% increase in dividends per
share. Looking forward, we are focused on successfully
integrating our recent acquisitions and are excited by the
long-term opportunity in front of Crown Castle to deliver on our 7%
to 8% annual growth target 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
Securities and Exchange Commission ("SEC").
The following table sets forth Crown Castle's current
Outlook for first quarter 2018 and full year 2018: |
(in millions) |
First Quarter 2018 |
Full Year 2018 |
Site
rental revenues |
$ |
1,132 |
to |
$ |
1,142 |
$ |
4,582 |
to |
$ |
4,627 |
Site
rental cost of operations(a) |
$ |
341 |
to |
$ |
351 |
$ |
1,360 |
to |
$ |
1,405 |
Net
income (loss) |
$ |
116 |
to |
$ |
141 |
$ |
511 |
to |
$ |
591 |
Adjusted EBITDA(b) |
$ |
745 |
to |
$ |
755 |
$ |
3,049 |
to |
$ |
3,094 |
Interest expense and
amortization of deferred financing costs(c) |
$ |
157 |
to |
$ |
167 |
$ |
642 |
to |
$ |
687 |
FFO(b)(d) |
$ |
477 |
to |
$ |
487 |
$ |
1,965 |
to |
$ |
2,010 |
AFFO(b)(d)(e) |
$ |
538 |
to |
$ |
548 |
$ |
2,219 |
to |
$ |
2,264 |
Weighted-average common
shares outstanding - diluted(f) |
|
408 |
|
408 |
|
|
|
|
|
(a)
Exclusive of depreciation, amortization and accretion.(b) See
reconciliation of this non-GAAP financial measure to net income
(loss) and definition included herein.(c) See reconciliation of
"components of interest expense and amortization of deferred
financing costs" herein for a discussion of non-cash interest
expense.(d) Attributable to CCIC common stockholders.(e) Our AFFO
for historical periods may not be comparable to those periods
presented prospectively from and after January 1, 2018, including
our Outlook for first quarter 2018 and full year 2018 herein.
See "Sustaining capital expenditures" and "Integration capital
expenditures" within "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" for further information.(f) The
assumption for first quarter 2018 and full year 2018 diluted
weighted-average common shares outstanding is based on diluted
common shares outstanding as of December 31, 2017. For all
periods presented, the diluted weighted-average common shares
outstanding does not include any assumed conversion of the 6.875%
Mandatory Convertible Preferred Stock in the share count. |
Full Year 2018 OutlookThe table below compares
the results for full year 2017, midpoint of the current full year
2018 Outlook and the midpoint of the previously provided full year
2018 Outlook for select metrics.
|
Midpoint of FY 2018 Outlook to FY 2017 Actual
Comparison |
|
|
(in
millions) |
Current Full Year2018Outlook |
Full Year2017Actual |
$ Change |
% Change |
PreviousFull Year2018Outlook(e) |
CurrentComparedtoPreviousOutlook |
Site rental
revenues |
$ |
4,605 |
$ |
3,669 |
+$ |
936 |
+26 |
% |
$ |
4,569 |
+$ |
36 |
Net income (loss) |
$ |
551 |
$ |
445 |
+$ |
106 |
+24 |
% |
$ |
555 |
-$ |
4 |
Adjusted EBITDA(a) |
$ |
3,072 |
$ |
2,482 |
+$ |
590 |
+24 |
% |
$ |
3,036 |
+$ |
36 |
AFFO(a)(b)(c) |
$ |
2,242 |
$ |
1,860 |
+$ |
382 |
+21 |
% |
$ |
2,242 |
|
— |
Weighted-average common
shares outstanding - diluted(d) |
|
408 |
|
383 |
|
+25 |
+7 |
% |
|
408 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) See
reconciliation of this non-GAAP financial measure to net income
(loss) and definition included herein.(b) Our AFFO for historical
periods may not be comparable to those periods presented
prospectively from and after January 1, 2018, including our Outlook
for first quarter 2018 and full year 2018 herein. See
"Sustaining capital expenditures" and "Integration capital
expenditures" within "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" for further information.(c) Attributable to
CCIC common stockholders.(d) The assumption for full year 2018
diluted weighted-average common shares outstanding is based on
diluted common shares outstanding as of December 31, 2017.
For all periods presented, the diluted weighted-average common
shares outstanding does not include any assumed conversion of the
6.875% Mandatory Convertible Preferred Stock in the share count.(e)
As issued on October 18, 2017. |
- Consistent with the prior full year
2018 Outlook, the current Outlook does not include any anticipated
contribution from the deployment of FirstNet.
- The increase in full year 2018
Outlook reflects an expected increase in site rental revenues
associated with certain long-term customer agreements signed during
fourth quarter 2017 that include a combination of contracted new
leasing activity and term extensions on existing leases. The
prior full year 2018 Outlook included the expected increase in new
leasing activity, but not the straight-line impact resulting from
these agreements. As a result, the signing of these agreements is
expected to impact site rental revenues, Adjusted EBITDA and net
income.
- The expected contribution from
Lightower for full year 2018 remains unchanged, including $850
million to $870 million in site rental revenues, $510 million to
$530 million in Adjusted EBITDA, and $465 million to $485 million
in AFFO before financing costs.
- The chart below reconciles the
components of expected growth in site rental revenues from 2017 to
2018 of $910 million to $955 million, inclusive of expected Organic
Contribution to Site Rental Revenues during 2018 of $185 million to
$225 million.
A photo accompanying this announcement is available
at: http://www.globenewswire.com/NewsRoom/AttachmentNg/987fa22d-d9d6-4922-81b5-381f87e5a469
- For the above chart, the entire
expected contribution to full year 2018 Outlook for growth in site
rental revenues from Lightower is included within acquisitions,
tower builds and other.
- The chart below reconciles the
components of expected growth in AFFO from 2017 to 2018 of between
$360 million and $400 million.
A photo accompanying this announcement is
available
at: http://www.globenewswire.com/NewsRoom/AttachmentNg/be1c4894-2e27-4063-b08d-e267d05c5e95
- 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 25,
2018, at 10:30 a.m. Eastern time to discuss its fourth quarter 2017
results. The conference call may be accessed by dialing
800-239-9838 and asking for the Crown Castle call (access code
3593733) 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 25,
2018, through 1:30 p.m. Eastern time on Wednesday, April 25, 2018,
and may be accessed by dialing 888-203-1112 and using access code
3593733. 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
owns, operates and leases more than 40,000 cell towers and
approximately 60,000 route miles of fiber supporting small cells
and fiber solutions across every major U.S. market. This
nationwide portfolio of communications infrastructure connects
cities and communities to essential data, technology and wireless
service - bringing information, ideas and innovations to the people
and businesses that need them. For more information on Crown
Castle, please visit www.crowncastle.com.
Non-GAAP Financial Measures, Segment Measures and Other
Calculations
This press release includes presentations of
Adjusted EBITDA, Adjusted Funds from Operations ("AFFO"), 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 and
Organic Contribution to Site Rental Revenues may not be comparable
to similarly titled measures of other companies, including other
companies in the communications infrastructure sector or other real
estate investment trusts ("REITs"). Our definition of FFO is
consistent with guidelines from the National Association of Real
Estate Investment Trusts with the exception of the impact of income
taxes in periods prior to our REIT conversion in 2014.
In addition to the non-GAAP financial measures
used herein, we also provide Segment Site Rental Gross Margin,
Segment 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.
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 removing the impact of our capital
structure (primarily interest charges from our outstanding debt)
and asset base (primarily depreciation, amortization and accretion)
from our financial results. Management also believes Adjusted
EBITDA is frequently used by investors or other interested parties
in the evaluation of the communications infrastructure sector and
other REITs to measure financial performance without regard to
items such as depreciation, amortization and accretion which can
vary depending upon accounting methods and the book value of
assets. In addition, Adjusted EBITDA is similar to the
measure of current financial performance generally used in our debt
covenant calculations. Adjusted EBITDA should be considered
only as a supplement to net income computed in accordance with GAAP
as a measure of our performance.
- AFFO is useful to investors or
other interested parties in evaluating our financial
performance. Management believes that AFFO helps investors or
other interested parties meaningfully evaluate our financial
performance as it includes (1) the impact of our capital structure
(primarily interest expense on our outstanding debt and dividends
on our preferred stock) and (2) sustaining capital expenditures,
and excludes the impact of our (a) asset base (primarily
depreciation, amortization and accretion) and (b) certain non-cash
items, including straight-lined revenues and expenses related to
fixed escalations and rent free periods. GAAP requires rental
revenues and expenses related to leases that contain specified
rental increases over the life of the lease to be recognized evenly
over the life of the lease. In accordance with GAAP, if
payment terms call for fixed escalations, or rent free periods, the
revenue or expense is recognized on a straight-lined basis over the
fixed, non-cancelable term of the contract. Management notes
that Crown Castle uses AFFO only as a performance measure.
AFFO should be considered only as a supplement to net income
computed in accordance with GAAP as a measure of our performance
and should not be considered as an alternative to cash flows from
operations or as residual cash flow available for discretionary
investment.
- FFO is useful to investors or other
interested parties in evaluating our financial performance.
Management believes that FFO may be used by investors or other
interested parties as a basis to compare our financial performance
with that of other REITs. FFO helps investors or other
interested parties meaningfully evaluate financial performance by
excluding the impact of our asset base (primarily depreciation,
amortization and accretion). FFO is not a key performance indicator
used by Crown Castle. FFO should be considered only as a
supplement to net income computed in accordance with GAAP as a
measure of our performance and should not be considered as an
alternative to cash flow from operations.
- Organic Contribution to Site Rental
Revenues is useful to investors or other interested parties in
understanding the components of the year-over-year changes in our
site rental revenues computed in accordance with GAAP.
Management uses the Organic Contribution to Site Rental Revenues to
assess year-over-year growth rates for our rental activities, to
evaluate current performance, to capture trends in rental rates,
new leasing activities and 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.
We define our non-GAAP financial measures,
segment measures and other calculations as follows:
Non-GAAP Financial Measures
Adjusted EBITDA. We define Adjusted EBITDA
as net income (loss) plus restructuring charges (credits), asset
write-down charges, acquisition and integration costs,
depreciation, amortization and accretion, amortization of prepaid
lease purchase price adjustments, interest expense and amortization
of deferred financing costs, (gains) losses on retirement of
long-term obligations, net (gain) loss on interest rate swaps,
(gains) losses on foreign currency swaps, impairment of
available-for-sale securities, interest income, other (income)
expense, (benefit) provision for income taxes, cumulative effect of
a change in accounting principle, (income) loss from discontinued
operations and stock-based compensation expense.
Adjusted Funds from Operations. We define
Adjusted Funds from Operations as FFO before straight-lined
revenue, straight-lined expense, stock-based compensation expense,
non-cash portion of tax provision, non-real estate related
depreciation, amortization and accretion, amortization of non-cash
interest expense, other (income) expense, (gains) losses on
retirement of long-term obligations, net (gain) loss on interest
rate swaps, (gains) losses on foreign currency swaps, acquisition
and integration costs, and adjustments for noncontrolling
interests, and less capital improvement capital expenditures and
corporate capital expenditures (i.e., sustaining capital
expenditures). See "Sustaining capital expenditures" and
"Integration capital expenditures" below for further information
regarding our calculation of certain components of AFFO.
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.
Segment Measures
Segment Site Rental Gross Margin. We
define Segment Site Rental Gross Margin as segment site rental
revenues less segment site rental cost of operations, excluding
stock-based compensation expense and prepaid lease purchase price
adjustments recorded in consolidated site rental cost of
operations.
Segment 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 consolidated network
services and other 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.
As a result of our 2017 acquisitions of fiber assets, we have
changed the name of our "Small Cells" operating segment to "Fiber".
The change did not impact the composition of the aforementioned
segment.
Other Calculations
Discretionary capital expenditures. We
define discretionary capital expenditures as those capital
expenditures made with respect to activities which we believe
exhibit sufficient potential to enhance long-term stockholder
value. They consist of (1) improvements to existing communications
infrastructure and construction of new communications
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 those capital expenditures made
with respect to either (1) corporate capital expenditures, such as
buildings, information technology equipment and office equipment or
(2) capital improvement capital expenditures to our communications
infrastructure assets that enable our customers' ongoing quiet
enjoyment of the communications infrastructure. For periods
presented prior to 2018, integration capital expenditures are
included within sustaining capital expenditures, as discussed in
"Integration capital expenditures" below.
Integration capital expenditures. We
anticipate incurring initial capital expenditures related to
integrating Lightower into our existing business. We
anticipate that the majority of these expected capital expenditures
will be incurred beginning in 2018 and will primarily relate to the
overall integration of Lightower’s information technology assets
into our business. We believe these expenditures are not
indicative of our ongoing financial performance, and therefore
their inclusion in our AFFO may hinder usefulness to investors and
other interested parties. Moreover, integration capital
expenditures were approximately $3.6 million and $0.1 million for
the years ended December 31, 2017 and 2016, respectively, and as
such, we believe that these costs have not previously been
significant enough to warrant separate consideration with regard to
the impact to AFFO.
As such, for periods presented prior to 2018,
integration capital expenditures were included as a component
within sustaining capital expenditures. For periods presented
beginning January 1, 2018, including our Outlook for first quarter
2018 and full year 2018 included herein, we no longer reflect
integration capital expenditures within sustaining capital
expenditures and consider integration capital expenditures as its
own component of our capital expenditures.
Because of our reclassification of integration
capital expenditures, our AFFO for historical periods may not be
comparable to those periods presented prospectively from and after
January 1, 2018, including our Outlook for first quarter 2018 and
full year 2018 included herein.
We define integration capital expenditures as
those capital expenditures made specifically with respect to recent
acquisitions that are essential to integrating acquired companies
into our business.
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, Segment
Measures and Other Calculations to Comparable GAAP Financial
Measures:
Reconciliation of Historical Adjusted
EBITDA:
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
December 31,2017 |
|
December 31,2016 |
|
December 31,2017 |
|
December 31,2016 |
(in millions) |
|
|
|
|
|
|
|
Net income (loss) |
$ |
98.1 |
|
|
$ |
124.7 |
|
|
$ |
444.6 |
|
|
$ |
357.0 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset
write-down charges |
7.0 |
|
|
6.2 |
|
|
17.3 |
|
|
34.5 |
|
Acquisition and integration costs |
34.4 |
|
|
6.0 |
|
|
61.4 |
|
|
17.5 |
|
Depreciation, amortization and accretion |
362.2 |
|
|
273.8 |
|
|
1,242.4 |
|
|
1,108.6 |
|
Amortization of prepaid lease purchase price adjustments |
5.0 |
|
|
5.3 |
|
|
20.1 |
|
|
21.3 |
|
Interest
expense and amortization of deferred financing costs(a) |
160.3 |
|
|
129.4 |
|
|
590.7 |
|
|
515.0 |
|
(Gains)
losses on retirement of long-term obligations |
— |
|
|
— |
|
|
3.5 |
|
|
52.3 |
|
Interest
income |
(6.2 |
) |
|
(0.3 |
) |
|
(18.8 |
) |
|
(0.8 |
) |
Other
(income) expense |
1.5 |
|
|
4.2 |
|
|
(2.0 |
) |
|
8.8 |
|
(Benefit)
provision for income taxes |
14.8 |
|
|
4.1 |
|
|
26.0 |
|
|
16.9 |
|
Stock-based compensation expense |
30.0 |
|
|
21.2 |
|
|
96.4 |
|
|
96.5 |
|
Adjusted EBITDA(b)(c) |
$ |
707.0 |
|
|
$ |
574.6 |
|
|
$ |
2,481.8 |
|
|
$ |
2,227.5 |
|
|
(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) See "Non-GAAP
Financial Measures, Segment Measures and Other Calculations" herein
for a discussion of our definition of Adjusted EBITDA.(c) The
above reconciliation excludes line items included in our definition
which are not applicable for the periods shown. |
Reconciliation of Current Outlook for Adjusted
EBITDA:
|
Q1 2018 |
|
Full Year 2018 |
(in
millions) |
Outlook |
|
Outlook |
Net income (loss) |
$116 |
|
to |
$141 |
|
$511 |
|
to |
$591 |
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset
write-down charges |
$9 |
|
to |
$11 |
|
$35 |
|
to |
$45 |
Acquisition and integration costs |
$13 |
|
to |
$17 |
|
$45 |
|
to |
$55 |
Depreciation, amortization and accretion |
$380 |
|
to |
$400 |
|
$1,566 |
|
to |
$1,601 |
Amortization of prepaid lease purchase price adjustments |
$4 |
|
to |
$6 |
|
$19 |
|
to |
$21 |
Interest
expense and amortization of deferred financing costs(a) |
$157 |
|
to |
$167 |
|
$642 |
|
to |
$687 |
(Gains)
losses on retirement of long-term obligations |
$0 |
|
to |
$0 |
|
$0 |
|
to |
$0 |
Interest
income |
$(1 |
) |
to |
$1 |
|
$(2 |
) |
to |
$2 |
Other
(income) expense |
$(1 |
) |
to |
$3 |
|
$3 |
|
to |
$5 |
(Benefit)
provision for income taxes |
$8 |
|
to |
$12 |
|
$34 |
|
to |
$42 |
Stock-based compensation expense |
$27 |
|
to |
$31 |
|
$116 |
|
to |
$124 |
Adjusted EBITDA(b)(c) |
$745 |
|
to |
$755 |
|
$3,049 |
|
to |
$3,094 |
|
(a) See the reconciliation of "components of historical
interest expense and amortization of deferred financing costs"
herein for a discussion of non-cash interest expense.(b) See
"Non-GAAP Financial Measures, Segment Measures and Other
Calculations" herein for a discussion of our definition of Adjusted
EBITDA.(c) The above reconciliation excludes line items
included in our definition which are not applicable for the periods
shown. |
Reconciliation of Historical FFO and
AFFO:
|
For the Three Months Ended |
|
For the Twelve Months Ended |
(in millions) |
December 31,2017 |
|
December 31,2016 |
|
December 31,2017 |
|
December 31,2016 |
Net income (loss) |
$ |
98.1 |
|
|
$ |
124.7 |
|
|
$ |
444.6 |
|
|
$ |
357.0 |
|
Real estate related
depreciation, amortization and accretion |
354.1 |
|
|
267.0 |
|
|
1,211.4 |
|
|
1,082.1 |
|
Asset write-down
charges |
7.0 |
|
|
6.2 |
|
|
17.3 |
|
|
34.5 |
|
Dividends on preferred
stock |
(29.9 |
) |
|
(11.0 |
) |
|
(29.9 |
) |
|
(44.0 |
) |
FFO(a)(b)(c)(d)(e) |
$ |
429.3 |
|
|
$ |
386.9 |
|
|
$ |
1,643.3 |
|
|
$ |
1,429.5 |
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
429.3 |
|
|
$ |
386.9 |
|
|
$ |
1,643.3 |
|
|
$ |
1,429.5 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
(2.6 |
) |
|
(5.0 |
) |
|
0.3 |
|
|
(47.4 |
) |
Straight-lined expense |
22.7 |
|
|
23.1 |
|
|
92.6 |
|
|
94.2 |
|
Stock-based compensation expense |
30.0 |
|
|
21.2 |
|
|
96.4 |
|
|
96.5 |
|
Non-cash
portion of tax provision |
11.9 |
|
|
2.1 |
|
|
9.2 |
|
|
7.3 |
|
Non-real
estate related depreciation, amortization and accretion |
8.1 |
|
|
6.9 |
|
|
31.0 |
|
|
26.5 |
|
Amortization of non-cash interest expense |
1.7 |
|
|
3.0 |
|
|
9.4 |
|
|
14.3 |
|
Other
(income) expense |
1.5 |
|
|
4.2 |
|
|
(2.0 |
) |
|
8.8 |
|
(Gains)
losses on retirement of long-term obligations |
— |
|
|
— |
|
|
3.5 |
|
|
52.3 |
|
Acquisition and integration costs |
34.4 |
|
|
6.0 |
|
|
61.4 |
|
|
17.5 |
|
Capital
improvement capital expenditures |
(13.5 |
) |
|
(17.5 |
) |
|
(40.8 |
) |
|
(42.8 |
) |
Corporate
capital expenditures |
(11.6 |
) |
|
(24.6 |
) |
|
(44.0 |
) |
|
(46.9 |
) |
AFFO(a)(b)(c)(d)(e) |
$ |
511.8 |
|
|
$ |
406.4 |
|
|
$ |
1,860.4 |
|
|
$ |
1,609.9 |
|
|
(a) See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions of
FFO and AFFO.(b) FFO and AFFO are reduced by cash paid for
preferred stock dividends during the period in which they are
paid.(c) Diluted weighted-average common shares outstanding
were 408.1 million, 352.9 million, 383.2 million and 340.9 million
for the three months ended December 31, 2017 and 2016 and the
twelve months ended December 31, 2017 and 2016, respectively.
For all periods presented, the diluted weighted-average common
shares outstanding does not include any assumed conversion of the
6.875% Mandatory Convertible Preferred Stock in the share
count.(d) The above reconciliation excludes line items
included in our definition which are not applicable for the periods
shown.(e) Attributable to CCIC common stockholders. |
Reconciliation of Current Outlook for
FFO and AFFO:
|
Q1 2018 |
|
Full Year 2018 |
(in millions) |
Outlook |
|
Outlook |
Net income (loss) |
$116 |
|
to |
$141 |
|
|
$511 |
|
to |
$591 |
|
Real estate related
depreciation, amortization and accretion |
$367 |
|
to |
$377 |
|
|
$1,500 |
|
to |
$1,520 |
|
Asset write-down
charges |
$9 |
|
to |
$11 |
|
|
$35 |
|
to |
$45 |
|
Dividends on preferred
stock |
$(28 |
) |
to |
$(28) |
|
|
$(113 |
) |
to |
$(113) |
|
FFO(a)(b)(c)(d)(e) |
$477 |
|
to |
$487 |
|
|
$1,965 |
|
to |
$2,010 |
|
|
|
|
|
|
|
|
|
FFO (from above) |
$477 |
|
to |
$487 |
|
|
$1,965 |
|
to |
$2,010 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
$(7 |
) |
to |
$3 |
|
|
$21 |
|
to |
$41 |
|
Straight-lined expense |
$17 |
|
to |
$27 |
|
|
$72 |
|
to |
$92 |
|
Stock-based compensation expense |
$27 |
|
to |
$31 |
|
|
$116 |
|
to |
$124 |
|
Non-cash
portion of tax provision |
$3 |
|
to |
$13 |
|
|
$(8 |
) |
to |
$7 |
|
Non-real
estate related depreciation, amortization and accretion |
$13 |
|
to |
$23 |
|
|
$66 |
|
to |
$81 |
|
Amortization of non-cash interest expense |
$0 |
|
to |
$5 |
|
|
$5 |
|
to |
$15 |
|
Other
(income) expense |
$(1 |
) |
to |
$3 |
|
|
$3 |
|
to |
$5 |
|
(Gains)
losses on retirement of long-term obligations |
$0 |
|
to |
$0 |
|
|
$0 |
|
to |
$0 |
|
Acquisition and integration costs |
$13 |
|
to |
$17 |
|
|
$45 |
|
to |
$55 |
|
Capital
improvement capital expenditures |
$(22 |
) |
to |
$(12) |
|
|
$(76 |
) |
to |
$(61) |
|
Corporate
capital expenditures |
$(21 |
) |
to |
$(11) |
|
|
$(56 |
) |
to |
$(41) |
|
AFFO(a)(b)(c)(d)(e)(f) |
$538 |
|
to |
$548 |
|
|
$2,219 |
|
to |
$2,264 |
|
|
(a) The assumption for first quarter 2018 and full year
2018 diluted weighted-average common shares outstanding is 408.1
million based on diluted common shares outstanding as of December
31, 2017. For all periods presented, the diluted
weighted-average common shares outstanding does not include any
assumed conversion of the 6.875% Mandatory Convertible Preferred
Stock in the share count. (b) See "Non-GAAP Financial
Measures, Segment 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 during
the period in which they are paid. (d) The above
reconciliation excludes line items included in our definition which
are not applicable for the periods shown.(e) Attributable to
CCIC common stockholders.(f) Our AFFO for historical periods
may not be comparable to those periods presented prospectively from
and after January 1, 2018, including our Outlook for first quarter
2018 and full year 2018 herein. See "Sustaining capital
expenditures" and "Integration capital expenditures" within
"Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information. |
For Comparative Purposes - Reconciliation of Previous
Outlook for Adjusted EBITDA:
|
Previously Issued |
|
Previously Issued |
|
Previously Issued |
|
Q4 2017 |
|
Full Year 2017 |
|
Full Year 2018 |
(in
millions) |
Outlook |
|
Outlook |
|
Outlook |
Net income (loss) |
$91 |
|
to |
$116 |
|
$438 |
|
to |
$463 |
|
|
$515 |
|
to |
$595 |
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
Asset
write-down charges |
$9 |
|
to |
$11 |
|
$19 |
|
to |
$21 |
|
|
$35 |
|
to |
$45 |
Acquisition and integration costs |
$11 |
|
to |
$15 |
|
$38 |
|
to |
$42 |
|
|
$64 |
|
to |
$74 |
Depreciation, amortization and accretion |
$296 |
|
to |
$310 |
|
$1,176 |
|
to |
$1,190 |
|
|
$1,508 |
|
to |
$1,544 |
Amortization of prepaid lease purchase price adjustments |
$4 |
|
to |
$6 |
|
$19 |
|
to |
$21 |
|
|
$19 |
|
to |
$21 |
Interest
expense and amortization of deferred financing costs |
$159 |
|
to |
$164 |
|
$590 |
|
to |
$595 |
|
|
$644 |
|
to |
$689 |
(Gains)
losses on retirement of long-term obligations |
$0 |
|
to |
$0 |
|
$4 |
|
to |
$4 |
|
|
$0 |
|
to |
$0 |
Interest
income |
$(1 |
) |
to |
$1 |
|
$(14 |
) |
to |
$(12) |
|
|
$(2 |
) |
to |
$2 |
Other
(income) expense |
$(1 |
) |
to |
$3 |
|
$(4 |
) |
to |
$0 |
|
|
$3 |
|
to |
$5 |
(Benefit)
provision for income taxes |
$3 |
|
to |
$7 |
|
$14 |
|
to |
$18 |
|
|
$32 |
|
to |
$40 |
Stock-based compensation expense |
$23 |
|
to |
$25 |
|
$89 |
|
to |
$91 |
|
|
$115 |
|
to |
$120 |
Adjusted EBITDA(a)(b) |
$624 |
|
to |
$629 |
|
$2,399 |
|
to |
$2,404 |
|
|
$3,013 |
|
to |
$3,058 |
|
(a) See "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" herein for a discussion of our definition
of Adjusted EBITDA.(b) The above reconciliation excludes line
items included in our definition which are not applicable for the
periods shown. |
For Comparative Purposes -
Reconciliation of Previous Outlook for FFO and AFFO:
|
Previously Issued |
|
Previously Issued |
|
Previously Issued |
|
Q4 2017 |
|
Full Year 2017 |
|
Full Year 2018 |
(in millions) |
Outlook |
|
Outlook |
|
Outlook |
Net income (loss) |
$91 |
|
to |
$116 |
|
|
$438 |
|
to |
$463 |
|
|
$515 |
|
to |
$595 |
|
Real estate related
depreciation, amortization and accretion |
$290 |
|
to |
$300 |
|
|
$1,147 |
|
to |
$1,157 |
|
|
$1,442 |
|
to |
$1,463 |
|
Asset write-down
charges |
$9 |
|
to |
$11 |
|
|
$19 |
|
to |
$21 |
|
|
$35 |
|
to |
$45 |
|
Dividends on preferred
stock |
$(30 |
) |
to |
$(30) |
|
|
$(30 |
) |
to |
$(30) |
|
|
$(113 |
) |
to |
$(113) |
|
FFO(a)(b)(c)(d) |
$376 |
|
to |
$381 |
|
|
$1,590 |
|
to |
$1,595 |
|
|
|
$1,910 |
|
to |
$1,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO (from above) |
$376 |
|
to |
$381 |
|
|
$1,590 |
|
to |
$1,595 |
|
|
$1,910 |
|
to |
$1,955 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
|
|
|
|
Straight-lined revenue |
$5 |
|
to |
$10 |
|
|
$8 |
|
to |
$13 |
|
|
$57 |
|
to |
$77 |
|
Straight-lined expense |
$20 |
|
to |
$25 |
|
|
$90 |
|
to |
$95 |
|
|
$70 |
|
to |
$90 |
|
Stock-based compensation expense |
$23 |
|
to |
$25 |
|
|
$89 |
|
to |
$91 |
|
|
$115 |
|
to |
$120 |
|
Non-cash
portion of tax provision |
$(2 |
) |
to |
$3 |
|
|
$(4 |
) |
to |
$1 |
|
|
$(7 |
) |
to |
$8 |
|
Non-real
estate related depreciation, amortization and accretion |
$6 |
|
to |
$10 |
|
|
$29 |
|
to |
$33 |
|
|
$66 |
|
to |
$81 |
|
Amortization of non-cash interest expense |
$1 |
|
to |
$6 |
|
|
$9 |
|
to |
$14 |
|
|
$6 |
|
to |
$16 |
|
Other
(income) expense |
$(1 |
) |
to |
$3 |
|
|
$(4 |
) |
to |
$0 |
|
|
$3 |
|
to |
$5 |
|
(Gains)
losses on retirement of long-term obligations |
$0 |
|
to |
$0 |
|
|
$4 |
|
to |
$4 |
|
|
$0 |
|
to |
$0 |
|
Acquisition and integration costs |
$11 |
|
to |
$15 |
|
|
$38 |
|
to |
$42 |
|
|
$64 |
|
to |
$74 |
|
Capital
improvement capital expenditures |
$(11 |
) |
to |
$(6) |
|
|
$(39 |
) |
to |
$(34) |
|
|
$(73 |
) |
to |
$(63) |
|
Corporate
capital expenditures |
$(19 |
) |
to |
$(14) |
|
|
$(52 |
) |
to |
$(47) |
|
|
$(53 |
) |
to |
$(43) |
|
AFFO(a)(b)(c)(d) |
$430 |
|
to |
$435 |
|
|
$1,779 |
|
to |
$1,784 |
|
|
$2,219 |
|
to |
$2,264 |
|
|
(a) Previously issued fourth quarter 2017, full
year 2017 and full year 2018 Outlook assumes diluted common shares
outstanding as of September 30, 2017 of approximately 408.0
million, 383.4 million and 408.0 million, respectively. For
all periods presented, the diluted weighted-average common shares
outstanding does not include any assumed conversion of the 6.875%
Mandatory Convertible Preferred Stock in the share count.(b)
See "Non-GAAP Financial Measures, Segment 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.(d) Attributable to CCIC common stockholders. |
The components of changes in site rental revenues for
the quarters ended December 31, 2017 and 2016 are as
follows:
|
Three Months Ended December 31, |
(in millions) |
2017 |
|
2016 |
Components of changes
in site rental revenues(a): |
|
|
|
Prior
year site rental revenues exclusive of straight-lined revenues
associated with fixed escalators(b)(c) |
$ |
812 |
|
|
$ |
763 |
|
|
|
|
|
New
leasing activity(b)(c) |
42 |
|
|
38 |
|
Escalators |
20 |
|
|
22 |
|
Non-renewals |
(18 |
) |
|
(21 |
) |
Organic
Contribution to Site Rental Revenues(d) |
44 |
|
|
39 |
|
Straight-lined revenues associated with fixed escalators |
3 |
|
|
5 |
|
Acquisitions and builds(e) |
192 |
|
|
10 |
|
Other |
— |
|
|
— |
|
Total GAAP site rental
revenues |
$ |
1,051 |
|
|
$ |
817 |
|
|
|
|
|
Year-over-year
changes in revenue: |
|
|
|
Reported GAAP site
rental revenues |
28.6 |
% |
|
|
Organic Contribution to
Site Rental Revenues(d)(f) |
5.5 |
% |
|
|
|
|
|
|
|
(a) 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.(b) Includes revenues from amortization of prepaid
rent in accordance with GAAP.(c) Includes revenues from the
construction of new small cell nodes, exclusive of straight-lined
revenues related to fixed escalators.(d) See "Non-GAAP
Financial Measures, Segment Measures and Other Calculations"
herein.(e) 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.(f) Calculated as the
percentage change from prior year site rental revenues, exclusive
of straight-lined revenues associated with fixed escalations
compared to Organic Contribution to Site Rental Revenues for the
current period. |
The components of the changes in site rental revenues
for the year ending December 31, 2018 are forecasted as
follows:
(in millions) |
Full Year2017 |
|
Full Year2018 Outlook |
Components of changes
in site rental revenues(a): |
|
|
|
Prior
year site rental revenues exclusive of straight-lined revenues
associated with fixed escalators(b)(c) |
$3,186 |
|
$3,670 |
|
|
|
|
New
leasing activity(b)(c) |
166 |
|
190-220 |
Escalators |
84 |
|
80-90 |
Non-renewals |
(90) |
|
(95)-(75) |
Organic
Contribution to Site Rental Revenues(d) |
160 |
|
185-225 |
Straight-lined revenues associated with fixed escalators |
— |
|
(40)-(20) |
Acquisitions and builds(e) |
323 |
|
745-765 |
Other |
— |
|
— |
Total GAAP site rental
revenues |
$3,669 |
|
$4,582-$4,627 |
|
|
|
|
Year-over-year
changes in revenue: |
|
|
|
Reported GAAP site
rental revenues |
13.5% |
|
25.5%(f) |
Organic Contribution to
Site Rental Revenues(d)(g) |
5.1% |
|
5.6%(f) |
|
|
|
|
(a)
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.(b) Includes revenues from amortization of prepaid
rent in accordance with GAAP.(c) Includes revenues from the
construction of new small cell nodes, exclusive of straight-lined
revenues related to fixed escalators.(d) See "Non-GAAP
Financial Measures, Segment Measures and Other Calculations"
herein.(e) 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.(f) Calculated based
on midpoint of Full Year 2018 Outlook.(g) Calculated as the
percentage change from prior year site rental revenues, exclusive
of straight-lined revenues associated with fixed escalations
compared to Organic Contribution to Site Rental Revenues for the
current period. |
Components of Historical Interest
Expense and Amortization of Deferred Financing Costs:
|
For the Three Months Ended |
(in millions) |
December 31,2017 |
|
December 31,2016 |
Interest expense on
debt obligations |
$ |
158.5 |
|
|
$ |
126.3 |
|
Amortization of
deferred financing costs and adjustments on long-term debt,
net |
5.1 |
|
|
4.6 |
|
Other, net |
(3.3 |
) |
|
(1.5 |
) |
Interest
expense and amortization of deferred financing costs |
$ |
160.3 |
|
|
$ |
129.4 |
|
Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing
Costs:
|
Q1 2018 |
|
Full Year 2018 |
(in millions) |
Outlook |
|
Outlook |
Interest expense on
debt obligations |
$157 |
|
to |
$162 |
|
|
$ |
645 |
|
to |
$665 |
|
Amortization of
deferred financing costs and adjustments on long-term debt,
net |
$4 |
|
to |
$7 |
|
|
$ |
18 |
|
to |
$23 |
|
Other, net |
$(4 |
) |
to |
$(2) |
|
|
$ |
(13 |
) |
to |
$(8) |
|
Interest
expense and amortization of deferred financing costs |
$157 |
|
to |
$167 |
|
|
$ |
642 |
|
to |
$687 |
|
Debt balances and maturity dates as of
December 31, 2017 are as follows:
(in
millions) |
Face Value |
|
Final Maturity |
Bank debt - variable
rate: |
|
|
|
2016
Revolver(a) |
$ |
980.0 |
|
Aug.
2022 |
2016 Term
Loan A |
2,400.9 |
|
Aug.
2022 |
Total bank debt |
3,380.9 |
|
|
Securitized debt -
fixed rate: |
|
|
|
Secured
Notes, Series 2009-1, Class A-1(b) |
33.1 |
|
Aug.
2019 |
Secured
Notes, Series 2009-1, Class A-2(b) |
70.0 |
|
Aug.
2029 |
Tower
Revenue Notes, Series 2010-3(a) |
1,250.0 |
|
Jan.
2040 |
Tower
Revenue Notes, Series 2010-6(a) |
1,000.0 |
|
Aug.
2040 |
Tower
Revenue Notes, Series 2015-1(a) |
300.0 |
|
May
2042 |
Tower
Revenue Notes, Series 2015-2(a) |
700.0 |
|
May
2045 |
Total
securitized debt |
3,353.1 |
|
|
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 |
4.000%
Senior Notes |
500.0 |
|
Mar.
2027 |
4.750%
Senior Notes |
350.0 |
|
May
2047 |
3.200%
Senior Notes |
750.0 |
|
Sept.
2024 |
3.650%
Senior Notes |
1,000.0 |
|
Sept.
2027 |
Total
bonds |
9,300.0 |
|
|
Capital leases and
other obligations |
227.8 |
|
Various |
Total Debt |
$ |
16,261.8 |
|
|
Less:
Cash and Cash Equivalents(c) |
$ |
314.1 |
|
|
Net Debt |
$ |
15,947.7 |
|
|
|
(a) 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. In January 2018, the Company issued $750.0
million aggregate principal amount of 3.150% senior unsecured notes
due July 2023 and $1.0 billion aggregate principal amount of 3.800%
senior unsecured notes due February 2028 and used the net proceeds
of such offering to repay (1) in full the Senior Secured Tower
Revenue Notes, Series 2010-3 and (2) a portion of the outstanding
borrowings under the 2016 Revolver.(b) The Senior Secured
Notes, Series 2009-1, Class A-1 principal amortizes during the
period beginning in 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.(c) Excludes
restricted cash. |
Net Debt to Last Quarter Annualized Adjusted EBITDA is
computed as follows:
(in millions) |
For the Three MonthsEnded December 31, 2017 |
Total face value of
debt |
$ |
16,261.8 |
|
Ending cash and cash
equivalents(a) |
314.1 |
|
Total Net Debt |
$ |
15,947.7 |
|
|
|
Adjusted EBITDA for the
three months ended December 31, 2017 |
$ |
707.0 |
|
Last quarter annualized
Adjusted EBITDA |
2,828.0 |
|
Net Debt to
Last Quarter Annualized Adjusted EBITDA |
5.6 |
x (b) |
|
|
|
(a)
Excludes restricted cash.(b) The Net Debt to Last Quarter
Annualized Adjusted EBITDA calculation does not give effect to a
full quarter ownership of Lightower, as this acquisition closed on
November 1, 2017. For the quarter ended December 31, 2017,
Lightower contribution to the Company's Adjusted EBITDA was $83
million. |
Components of Capital
Expenditures:
|
For the Three Months Ended |
(in millions) |
December 31, 2017 |
|
December 31, 2016 |
|
Towers |
Fiber |
Other |
Total |
|
Towers |
Fiber |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases
of land interests |
$ |
14.6 |
|
$ |
— |
|
$ |
— |
|
$ |
14.6 |
|
|
$ |
16.7 |
|
$ |
— |
|
$ |
— |
|
$ |
16.7 |
|
Communications infrastructure construction and
improvements |
76.2 |
|
260.6 |
|
— |
|
336.8 |
|
|
77.0 |
|
123.9 |
|
— |
|
200.9 |
|
Sustaining: |
|
|
|
|
|
|
|
|
|
Capital
improvement and corporate |
10.6 |
|
7.8 |
|
6.7 |
|
25.1 |
|
|
16.9 |
|
6.3 |
|
18.9 |
|
42.1 |
|
Total |
$ |
101.4 |
|
$ |
268.4 |
|
$ |
6.7 |
|
$ |
376.5 |
|
|
$ |
110.6 |
|
$ |
130.2 |
|
$ |
18.9 |
|
$ |
259.7 |
|
|
Note: See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for further discussion of our components
of capital expenditures.
Cautionary Language Regarding
Forward-Looking Statements
This press release contains forward-looking
statements and information that are based on our management's
current expectations. Such statements include our Outlook and
plans, projections, and estimates regarding (1) potential benefits,
returns, opportunities and customer and shareholder value which may
be derived from our business, assets, investments, acquisitions and
dividends, including on a long-term basis, (2) our strategy,
strategic position, business model and capabilities and the
strength of our business, (3) our customers' investments and the
demand from our customers, and the benefits which may be derived
therefrom, (4) growth in demand for data and the benefits which may
be derived therefrom, (5) our growth, including our revenue growth,
long-term prospects and the trends impacting our business, (6) our
ability to successfully integrate our recent acquisitions,
including Lightower, and the potential benefits and contributions
which may be derived from such acquisitions, including (a) our
ability to deliver on our dividend growth target and (b) the
contribution to or impact on our financial or operating results,
including site rental revenues, Adjusted EBITDA, net income, AFFO
and Organic Contribution to Site Rental Revenues, (7) leasing
environment and activity, (8) our investments, including in towers,
small cells and fiber, and the potential growth, returns and
benefits therefrom, (9) our dividends, including our dividend plans
and the amount of our dividends and dividend growth rate and
targets, (10) strategic position of and demand for our
communications infrastructure (including fiber solutions and small
cells) and services and the geographic location of such demand,
(11) cash flows, (12) potential contribution from the deployment of
FirstNet, (13) tenant non-renewals, including the impact thereof,
(14) capital expenditures, including sustaining capital
expenditures and integration capital expenditures and the timing
thereof, (15) straight-line adjustments, (16) site rental revenues
and estimated growth thereof, (17) site rental cost of
operations, (18) net income (loss), (19) Adjusted EBITDA, (20)
expenses, including interest expense and amortization of deferred
financing costs, (21) FFO, (22) AFFO and estimated growth thereof,
(23) Organic Contribution to Site Rental Revenues, (24) our
weighted-average common shares outstanding, including on a diluted
basis, (25) network services contribution and (26) the utility
of certain financial measures, including non-GAAP financial
measures. Such forward-looking statements are subject to
certain risks, uncertainties and assumptions prevailing market
conditions and the following:
- Our business depends on the demand
for our communications infrastructure, driven primarily by demand
for wireless connectivity, and we may be adversely affected by any
slowdown in such demand. Additionally, a reduction in the
amount or change in the mix of carrier network investment may
materially and adversely affect our business (including reducing
demand for 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 communications infrastructure and network services.
- The business model for small cells
contains certain 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 communications infrastructure or negatively impact our
revenues.
- The expansion or development of our
business, including through acquisitions, increased product
offerings or other strategic growth opportunities, may cause
disruptions in our business, which may have an adverse effect on
our business, operations or financial results.
- We may fail to realize all of the
anticipated benefits of the Lightower acquisition or those benefits
may take longer to realize than expected. We may also encounter
significant difficulties in integrating Lightower’s business.
- If we fail to retain rights to our
communications 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 or
regulations which regulate our business and which may change at any
time, we may be fined or even lose our right to conduct some of our
business.
- If radio frequency emissions from
wireless handsets or equipment on our communications infrastructure
are demonstrated to cause negative health effects, potential future
claims could adversely affect our operations, costs or
revenues.
- Certain provisions of our restated
certificate of incorporation, amended and restated by-laws and
operative agreements, and domestic and international competition
laws may make it more difficult for a third party to acquire
control of us or for us to acquire control of a third party, even
if such a change in control would be beneficial to our
stockholders.
- We may be vulnerable to security
breaches 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 U.S.
Internal Revenue Code. Failure to remain qualified as a REIT
would result in our inability to deduct dividends to stockholders
when computing our taxable income, which would reduce our available
cash.
- Complying with REIT requirements,
including the 90% distribution requirement, may limit our
flexibility or cause us to forgo otherwise attractive
opportunities, including certain discretionary investments and
potential financing alternatives.
- REIT related ownership limitations
and transfer restrictions may prevent or restrict certain transfers
of our capital stock.
- If we fail to pay scheduled
dividends on the 6.875% Mandatory Convertible Preferred Stock, in
cash, common stock, or any combination of cash and common stock, we
will be prohibited from paying dividends on our common stock, which
may jeopardize our status as a REIT.
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 Securities and
Exchange Commission. 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 31,2017 |
|
December 31,2016 |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
314,094 |
|
|
$ |
567,599 |
|
Restricted cash |
121,065 |
|
|
124,547 |
|
Receivables, net |
397,585 |
|
|
373,532 |
|
Prepaid
expenses |
162,366 |
|
|
128,721 |
|
Other
current assets |
138,670 |
|
|
130,362 |
|
Total
current assets |
1,133,780 |
|
|
1,324,761 |
|
Deferred site rental
receivables |
1,300,338 |
|
|
1,317,658 |
|
Property and equipment,
net |
12,932,885 |
|
|
9,805,315 |
|
Goodwill |
10,021,468 |
|
|
5,757,676 |
|
Other intangible
assets, net |
5,961,759 |
|
|
3,650,072 |
|
Long-term prepaid rent
and other assets, net |
879,340 |
|
|
819,610 |
|
Total
assets |
$ |
32,229,570 |
|
|
$ |
22,675,092 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
230,279 |
|
|
$ |
188,516 |
|
Accrued
interest |
131,790 |
|
|
97,019 |
|
Deferred
revenues |
457,116 |
|
|
353,005 |
|
Other
accrued liabilities |
357,646 |
|
|
221,066 |
|
Current
maturities of debt and other obligations |
115,251 |
|
|
101,749 |
|
Total
current liabilities |
1,292,082 |
|
|
961,355 |
|
Debt and other
long-term obligations |
16,044,369 |
|
|
12,069,393 |
|
Other long-term
liabilities |
2,554,037 |
|
|
2,087,229 |
|
Total
liabilities |
19,890,488 |
|
|
15,117,977 |
|
Commitments and
contingencies |
|
|
|
CCIC stockholders'
equity: |
|
|
|
Common
stock, $0.01 par value; 600,000,000 shares authorized; shares
issued and outstanding: December 31, 2017—406,280,673
and December 31, 2016—360,536,659 |
4,063 |
|
|
3,605 |
|
6.875%
Mandatory Convertible Preferred Stock, Series A, $0.01 par value;
20,000,000 shares authorized; shares issued and outstanding:
December 31, 2017—1,649,998 and December 31, 2016—0; aggregate
liquidation value: December 31, 2017—$1,649,998 and
December 31, 2016—$0 |
17 |
|
|
— |
|
Additional paid-in capital |
16,843,607 |
|
|
10,938,236 |
|
Accumulated other comprehensive income (loss) |
(3,989 |
) |
|
(5,888 |
) |
Dividends/distributions in excess of earnings |
(4,504,616 |
) |
|
(3,378,838 |
) |
Total
equity |
12,339,082 |
|
|
7,557,115 |
|
Total
liabilities and equity |
$ |
32,229,570 |
|
|
$ |
22,675,092 |
|
|
|
CROWN CASTLE INTERNATIONAL CORP.CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)(in
thousands, except share and per share amounts) |
|
Three Months EndedDecember 31, |
|
Twelve Months EndedDecember 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net revenues: |
|
|
|
|
|
|
|
Site
rental |
$ |
1,050,686 |
|
|
$ |
817,381 |
|
|
$ |
3,669,191 |
|
|
$ |
3,233,307 |
|
Network
services and other |
187,404 |
|
|
215,035 |
|
|
686,414 |
|
|
687,918 |
|
Net
revenues |
1,238,090 |
|
|
1,032,416 |
|
|
4,355,605 |
|
|
3,921,225 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Costs of
operations (exclusive of depreciation, amortization and
accretion): |
|
|
|
|
|
|
|
Site
rental |
328,945 |
|
|
261,127 |
|
|
1,143,914 |
|
|
1,023,350 |
|
Network
services and other |
109,650 |
|
|
131,105 |
|
|
419,787 |
|
|
417,171 |
|
General
and administrative |
127,466 |
|
|
92,122 |
|
|
426,698 |
|
|
371,031 |
|
Asset
write-down charges |
7,038 |
|
|
6,202 |
|
|
17,322 |
|
|
34,453 |
|
Acquisition and integration costs |
34,351 |
|
|
5,994 |
|
|
61,431 |
|
|
17,453 |
|
Depreciation, amortization and accretion |
362,211 |
|
|
273,826 |
|
|
1,242,408 |
|
|
1,108,551 |
|
Total
operating expenses |
969,661 |
|
|
770,376 |
|
|
3,311,560 |
|
|
2,972,009 |
|
Operating income
(loss) |
268,429 |
|
|
262,040 |
|
|
1,044,045 |
|
|
949,216 |
|
Interest expense and
amortization of deferred financing costs |
(160,280 |
) |
|
(129,376 |
) |
|
(590,682 |
) |
|
(515,032 |
) |
Gains (losses) on
retirement of long-term obligations |
— |
|
|
— |
|
|
(3,525 |
) |
|
(52,291 |
) |
Interest income |
6,176 |
|
|
342 |
|
|
18,761 |
|
|
796 |
|
Other income
(expense) |
(1,468 |
) |
|
(4,212 |
) |
|
1,994 |
|
|
(8,835 |
) |
Income (loss) from
continuing operations before income taxes |
112,857 |
|
|
128,794 |
|
|
470,593 |
|
|
373,854 |
|
Benefit (provision) for
income taxes |
(14,753 |
) |
|
(4,084 |
) |
|
(26,043 |
) |
|
(16,881 |
) |
Net income (loss) |
98,104 |
|
|
124,710 |
|
|
444,550 |
|
|
356,973 |
|
Dividends on preferred
stock |
(28,359 |
) |
|
— |
|
|
(58,294 |
) |
|
(32,991 |
) |
Net income (loss)
attributable to CCIC common stockholders |
$ |
69,745 |
|
|
$ |
124,710 |
|
|
$ |
386,256 |
|
|
$ |
323,982 |
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net
income (loss) attributable to CCIC common stockholders, basic |
$ |
0.17 |
|
|
$ |
0.35 |
|
|
$ |
1.01 |
|
|
$ |
0.95 |
|
Net
income (loss) attributable to CCIC common stockholders,
diluted |
$ |
0.17 |
|
|
$ |
0.35 |
|
|
$ |
1.01 |
|
|
$ |
0.95 |
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding (in thousands): |
|
|
|
|
|
|
|
Basic |
406,278 |
|
|
352,116 |
|
|
381,740 |
|
|
340,349 |
|
Diluted |
408,130 |
|
|
352,878 |
|
|
383,221 |
|
|
340,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CROWN CASTLE INTERNATIONAL CORP.CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)(in
thousands) |
|
Twelve Months Ended December 31, |
|
2017 |
|
2016 |
Cash flows from
operating activities: |
|
|
|
Net income (loss) |
$ |
444,550 |
|
|
$ |
356,973 |
|
Adjustments to
reconcile net income (loss) to net cash provided by (used for)
operating activities: |
|
|
|
Depreciation, amortization and accretion |
1,242,408 |
|
|
1,108,551 |
|
(Gains)
losses on retirement of long-term obligations |
3,525 |
|
|
52,291 |
|
Amortization of deferred financing costs and other non-cash
interest |
9,368 |
|
|
14,333 |
|
Stock-based compensation expense |
91,647 |
|
|
79,338 |
|
Asset
write-down charges |
17,322 |
|
|
34,453 |
|
Deferred
income tax (benefit) provision |
14,888 |
|
|
8,603 |
|
Other
non-cash adjustments, net |
(1,320 |
) |
|
5,059 |
|
Changes
in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
Increase
(decrease) in liabilities |
176,226 |
|
|
236,642 |
|
Decrease
(increase) in assets |
45,572 |
|
|
(113,979 |
) |
Net cash provided by (used for) operating activities |
2,044,186 |
|
|
1,782,264 |
|
Cash flows from
investing activities: |
|
|
|
Payments
for acquisition of businesses, net of cash acquired |
(9,260,135 |
) |
|
(556,854 |
) |
Capital
expenditures |
(1,228,071 |
) |
|
(873,883 |
) |
Net
(payments) receipts from settled swaps |
(328 |
) |
|
8,141 |
|
Other
investing activities, net |
(5,487 |
) |
|
12,364 |
|
Net cash provided by (used for) investing activities |
(10,494,021 |
) |
|
(1,410,232 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds
from issuance of long-term debt |
3,092,323 |
|
|
5,201,010 |
|
Principal
payments on debt and other long-term obligations |
(118,880 |
) |
|
(95,787 |
) |
Purchases
and redemptions of long-term debt |
— |
|
|
(4,044,834 |
) |
Borrowings under revolving credit facility |
2,820,000 |
|
|
3,440,000 |
|
Payments
under revolving credit facility |
(1,840,000 |
) |
|
(4,565,000 |
) |
Payments
for financing costs |
(29,240 |
) |
|
(41,533 |
) |
Net
proceeds from issuance of common stock |
4,221,329 |
|
|
1,325,865 |
|
Net
proceeds from issuance of preferred stock |
1,607,759 |
|
|
— |
|
Purchases
of capital stock |
(23,307 |
) |
|
(24,936 |
) |
Dividends/distributions paid on common stock |
(1,508,705 |
) |
|
(1,239,158 |
) |
Dividends
paid on preferred stock |
(29,935 |
) |
|
(43,988 |
) |
Net
(increase) decrease in restricted cash |
3,808 |
|
|
(7,931 |
) |
Net cash provided by (used for) financing activities |
8,195,152 |
|
|
(96,292 |
) |
Net increase
(decrease) in cash and cash equivalents -
continuing operations |
(254,683 |
) |
|
275,740 |
|
Discontinued
operations: |
|
|
|
Net cash provided by (used for) investing
activities |
— |
|
|
113,150 |
|
Net increase
(decrease) in cash and cash equivalents - discontinued
operations |
— |
|
|
113,150 |
|
Effect of
exchange rate changes |
1,178 |
|
|
(101 |
) |
Cash and cash equivalents at beginning of
period |
567,599 |
|
|
178,810 |
|
Cash and cash
equivalents at end of period |
$ |
314,094 |
|
|
$ |
567,599 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Interest
paid |
546,543 |
|
|
470,655 |
|
Income
taxes paid |
16,427 |
|
|
13,821 |
|
|
|
|
|
|
|
|
CROWN CASTLE INTERNATIONAL CORP.SEGMENT
OPERATING RESULTS (UNAUDITED)(in thousands) |
SEGMENT OPERATING RESULTS |
|
Three Months Ended December 31, 2017 |
|
Three Months Ended December 31, 2016 |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
Segment site rental
revenues |
$ |
740,560 |
|
|
$ |
310,126 |
|
|
|
|
$ |
1,050,686 |
|
|
$ |
712,549 |
|
|
$ |
104,832 |
|
|
|
|
$ |
817,381 |
|
Segment network
services and other revenue |
175,939 |
|
|
11,465 |
|
|
|
|
187,404 |
|
|
169,647 |
|
|
45,388 |
|
|
|
|
215,035 |
|
Segment revenues |
916,499 |
|
|
321,591 |
|
|
|
|
1,238,090 |
|
|
882,196 |
|
|
150,220 |
|
|
|
|
1,032,416 |
|
Segment site rental
cost of operations |
212,090 |
|
|
105,633 |
|
|
|
|
317,723 |
|
|
214,878 |
|
|
38,057 |
|
|
|
|
252,935 |
|
Segment network
services and other cost of operations |
98,516 |
|
|
9,613 |
|
|
|
|
108,129 |
|
|
95,289 |
|
|
34,207 |
|
|
|
|
129,496 |
|
Segment cost of
operations(a) |
310,606 |
|
|
115,246 |
|
|
|
|
425,852 |
|
|
310,167 |
|
|
72,264 |
|
|
|
|
382,431 |
|
Segment site rental
gross margin(b) |
528,470 |
|
|
204,493 |
|
|
|
|
732,963 |
|
|
497,671 |
|
|
66,775 |
|
|
|
|
564,446 |
|
Segment network
services and other gross margin(b) |
77,423 |
|
|
1,852 |
|
|
|
|
79,275 |
|
|
74,358 |
|
|
11,181 |
|
|
|
|
85,539 |
|
Segment general and
administrative expenses(a) |
24,537 |
|
|
34,278 |
|
|
46,411 |
|
|
105,226 |
|
|
24,574 |
|
|
14,956 |
|
|
35,838 |
|
|
75,368 |
|
Segment operating
profit(b) |
581,356 |
|
|
172,067 |
|
|
(46,411 |
) |
|
707,012 |
|
|
547,455 |
|
|
63,000 |
|
|
(35,838 |
) |
|
574,617 |
|
Stock-based
compensation expense |
|
|
|
|
29,976 |
|
|
29,976 |
|
|
|
|
|
|
21,241 |
|
|
21,241 |
|
Depreciation,
amortization and accretion |
|
|
|
|
362,211 |
|
|
362,211 |
|
|
|
|
|
|
273,826 |
|
|
273,826 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
160,280 |
|
|
160,280 |
|
|
|
|
|
|
129,376 |
|
|
129,376 |
|
Other income (expenses)
to reconcile to income (loss) from continuing operations before
income taxes(c) |
|
|
|
|
41,688 |
|
|
41,688 |
|
|
|
|
|
|
21,380 |
|
|
21,380 |
|
Income (loss) from
continuing operations before income taxes |
|
|
|
|
|
|
$ |
112,857 |
|
|
|
|
|
|
|
|
$ |
128,794 |
|
|
(a)
Segment cost of operations excludes (1) stock-based compensation
expense of $7.7 million and $4.5 million for the three months ended
December 31, 2017 and 2016, respectively and (2) prepaid lease
purchase price adjustments of $5.0 million and $5.3 million for the
three months ended December 31, 2017 and 2016, respectively.
Segment general and administrative expenses exclude stock-based
compensation expense of $22.3 million and $16.8 million for the
three months ended December 31, 2017 and 2016, respectively.
(b) See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions of
segment site rental gross margin, segment network services 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, 2017 |
|
Twelve Months Ended December 31, 2016 |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
Segment site rental
revenues |
$ |
2,899,554 |
|
|
$ |
769,637 |
|
|
|
|
$ |
3,669,191 |
|
|
$ |
2,830,708 |
|
|
$ |
402,599 |
|
|
|
|
$ |
3,233,307 |
|
Segment network
services and other revenue |
636,532 |
|
|
49,882 |
|
|
|
|
686,414 |
|
|
603,689 |
|
|
84,229 |
|
|
|
|
687,918 |
|
Segment revenues |
3,536,086 |
|
|
819,519 |
|
|
|
|
4,355,605 |
|
|
3,434,397 |
|
|
486,828 |
|
|
|
|
3,921,225 |
|
Segment site rental
cost of operations |
844,795 |
|
|
264,059 |
|
|
|
|
1,108,854 |
|
|
840,209 |
|
|
147,459 |
|
|
|
|
987,668 |
|
Segment network
services and other cost of operations |
374,134 |
|
|
40,691 |
|
|
|
|
414,825 |
|
|
344,595 |
|
|
64,859 |
|
|
|
|
409,454 |
|
Segment cost of
operations(a) |
1,218,929 |
|
|
304,750 |
|
|
|
|
1,523,679 |
|
|
1,184,804 |
|
|
212,318 |
|
|
|
|
1,397,122 |
|
Segment site rental
gross margin(b) |
2,054,759 |
|
|
505,578 |
|
|
|
|
2,560,337 |
|
|
1,990,499 |
|
|
255,140 |
|
|
|
|
2,245,639 |
|
Segment network
services and other gross margin(b) |
262,398 |
|
|
9,191 |
|
|
|
|
271,589 |
|
|
259,094 |
|
|
19,370 |
|
|
|
|
278,464 |
|
Segment general and
administrative expenses(a) |
93,662 |
|
|
89,048 |
|
|
167,455 |
|
|
350,165 |
|
|
92,903 |
|
|
60,676 |
|
|
143,001 |
|
|
296,580 |
|
Segment operating
profit(b) |
2,223,495 |
|
|
425,721 |
|
|
(167,455 |
) |
|
2,481,761 |
|
|
2,156,690 |
|
|
213,834 |
|
|
(143,001 |
) |
|
2,227,523 |
|
Stock-based
compensation expense |
|
|
|
|
96,435 |
|
|
96,435 |
|
|
|
|
|
|
96,538 |
|
|
96,538 |
|
Depreciation,
amortization and accretion |
|
|
|
|
1,242,408 |
|
|
1,242,408 |
|
|
|
|
|
|
1,108,551 |
|
|
1,108,551 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
590,682 |
|
|
590,682 |
|
|
|
|
|
|
515,032 |
|
|
515,032 |
|
Other income (expenses)
to reconcile to income (loss) from continuing operations before
income taxes(c) |
|
|
|
|
81,643 |
|
|
81,643 |
|
|
|
|
|
|
133,548 |
|
|
133,548 |
|
Income (loss) from
continuing operations before income taxes |
|
|
|
|
|
|
$ |
470,593 |
|
|
|
|
|
|
|
|
$ |
373,854 |
|
|
(a)
Segment cost of operations excludes (1) stock-based compensation
expense of $19.9 million and $22.1 million for the twelve months
ended December 31, 2017 and 2016, respectively and (2) prepaid
lease purchase price adjustments of $20.1 million and $21.3 million
for the twelve months ended December 31, 2017 and 2016,
respectively. Segment general and administrative expenses
exclude stock-based compensation expense of $76.5 million and $74.5
million for the twelve months ended December 31, 2017 and 2016,
respectively. (b) See "Non-GAAP Financial Measures,
Segment Measures and Other Calculations" herein for a discussion of
our definitions of segment site rental gross margin, segment
network services and other gross margin and segment operating
profit.(c) See condensed consolidated statement of operations
for further information. |
Contacts: Dan Schlanger, CFOBen Lowe, VP
Corporate FinanceCrown Castle International Corp.713-570-3050
Crown Castle (NYSE:CCI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Crown Castle (NYSE:CCI)
Historical Stock Chart
From Sep 2023 to Sep 2024