Achieves Significant Revenue Growth of 25%
in 2020 over 2019
Radius Global Infrastructure, Inc. (NASDAQ: RADI) (“Radius” or
the “Company”), one of the largest global owners and acquirors of
primarily triple net real property interests and contractual rights
underlying wireless communications cell sites and other essential
digital infrastructure in 19 countries, today reported results for
the fourth quarter of and year end 2020.
“We are extremely pleased with our 2020 results as we delivered
strong revenue, gross profit and portfolio growth. Our global
acquisition platform generated significant acquisitions at an
increasing rate of capital deployment, allowing us to grow our
strategic rent portfolio appreciably. In the fourth quarter, we
increased revenue by 36%, bringing our Annualized In Place Rents to
$84.1 million. We had a similar 35% increase of Annualized In Place
Rents year over year. These stable cash flow streams underlying
essential telecom infrastructure leases provide a powerful balance
of yield and growth, now in increasing scale,” commented Bill
Berkman, Co-Chairman and Chief Executive Officer.
QUARTERLY RESULTS
Revenue increased 36% to $20.1 million for the three
months ended December 31, 2020 compared to revenue of $14.8 million
for the three months ended December 31, 2019.
Gross Profit increased 37% to $19.9 million in the 2020
three-month period when compared to gross profit of $14.5 million
in the corresponding 2019 three-month period.
FULL-YEAR RESULTS
Revenue increased 25% to $69.8 million for the year ended
December 31, 2020 compared to revenue of $55.7 million for the year
ended December 31, 2019.
Gross Profit increased 25% to $69.1 million in the 2020
twelve-month period when compared to gross profit of $55.4 million
in the corresponding 2019 twelve-month period.
Annualized in Place Rents increased to $84.1 million as
of December 31, 2020, an increase of 35% over the December 31, 2019
Annualized In Place Rents of $62.1 million.
Investments in Real Property Interests and Related
Intangible Assets as identified on the Company’s Consolidated
Statements of Cash Flows was $180.7 million and $78.1 million for
the year ended December 31, 2020 and 2019 respectively, an increase
of $102.6 million or 131% for the year ended December 31, 2020 over
the year ended December 31, 2019.
Acquisition Capex deployed by the Company was $220.8
million and $98.9 million for the year ended December 31, 2020 and
2019 respectively, an increase of $121.9 million or 123% for the
year ended December 31, 2020 over the year ended December 31,
2019.
We refer you to the GAAP financial disclosure and
reconciliations to non-GAAP financial measurement set forth below
and in the Company’s Form 10-K. The Company pays for its
acquisitions of real property interests either with a one-time
payment at the time of acquisition or, in a limited number of
instances, with a combination of upfront payments and future
contractually committed payments over a period of time, in each
case pursuant to the individual acquisition agreement. In our
Consolidated Statements of Cash flows, the one-time and upfront
cash payments are reported as Investments in Real Property
Interests and Related Intangible Assets. The total cash spent and
the commitment for future payments in any given period for the
acquisition of real property interests adjusted for changes in
foreign currency is our Acquisition Capex. Acquisition Capex is a
non-GAAP metric, albeit one the Company believes is valuable to
readers of the Company’s financial statements. Please refer to the
table below for a full reconciliation of Acquisition Capex.
2021 FINANCING TRANSACTION
The Company added approximately $94 million of USD equivalents
in February 2021 with the issuance of eight year, fixed and
floating rate, interest-only secured notes under an existing debt
facility. The debt was issued in 77 million Euros at a cash coupon
rate of 3.9%, and 1.75% of interest paid in kind.
Attachment: Financial statement tables and non-GAAP
reconciliations
WEBCAST AND CONFERENCE CALL INFORMATION
Management will host a webcast and conference call on Tuesday,
March 30, 2021 at 8:30 A.M. Eastern Time to review the Company’s
audited consolidated financial results, discuss recent events and
conduct a question-and-answer session.
The live webcast and presentation slides will be available
through the “News & Events” section of the Company’s website,
https://www.radiusglobal.com/news-events/events-presentations.
Participants are advised to go to the site at least 15 minutes
prior to the scheduled start time in order to register, download
and install any necessary audio software.
For those unable to access the webcast, the conference call will
be accessible domestically or internationally, by dialing
1-877-407-0789 or 1-201-689-8562, respectively. Upon dialing in,
please request to join the Radius Global Infrastructure Fourth
Quarter and Full Year 2020 Earnings Conference Call.
A replay of the webcast and access to the presentation slides
will be available on the Company’s website until Tuesday, April 13,
2021, at
https://www.radiusglobal.com/news-events/events-presentations.
About the Company
Radius Global Infrastructure, Inc., through its subsidiary AP
WIP Investments, LLC ("APW"), is a multinational owner of a
growing, diversified portfolio of triple-net ground, rooftop and
other critical communications properties leased to wireless
carriers and tower companies underlying their mission critical cell
site antenna infrastructure. APW's proven lease origination engine
drives highly attractive yields on capital invested. The Company is
also expanding into other digital infrastructure segments and has a
broad pipeline of proprietary and non-proprietary acquisitions,
investments, and build-to-suit opportunities.
For further information see https://www.radiusglobal.com.
FORWARD-LOOKING STATEMENTS AND DISCLAIMERS
This press release, including the attachments, contain
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995, as amended. You can identify these
statements by the use of forward-looking terminology such as "may,"
"will," "should," "expect," "anticipate," "project," "estimate, "
"intend," "continue" or "believe" or the negatives thereof or other
variations thereon or comparable terminology. You should read
statements that contain these words carefully because they discuss
our plans, strategies, prospects, and expectations concerning our
business, operating results, financial condition, and other similar
matters. We believe that it is important to communicate our future
expectations to our investors. There may be events in the future,
however, that we are not able to predict accurately or control. Any
forward-looking statement made by us in this press release speaks
only as of the date on which we make it. Factors or events that
could cause our actual results to differ may emerge from time to
time, and it is not possible for us to predict all of them. We
undertake no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
The Company has on file with the Securities and Exchange
Commission (“SEC”), which the SEC has declared effective, a
registration statement on Form S-4 (including a prospectus) in
connection with the Company’s listing of its Class A Common Stock
on NASDAQ and its domestication to Delaware. In connection with the
NASDAQ listing and the domestication, you should read the
prospectus in that registration statement and other documents the
Company has filed with the SEC for more complete information about
the Company, the NASDAQ listing and the domestication. These
documents are available for free by visiting EDGAR on the SEC
website at www.sec.gov.
RADIUS GLOBAL INFRASTRUCTURE,
INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except share and
per share amounts)
Successor
Predecessor
Period from
February 10,
2020 to
December 31,
2020
Period from
January 1,
2020 to
February 9,
2020
Year
ended
December 31,
2019
Revenue
$
62,923
$
6,836
$
55,706
Cost of service
619
34
326
Gross profit
62,304
6,802
55,380
Operating expenses:
Selling, general and administrative
60,565
4,344
36,783
Share-based compensation
83,421
—
—
Management incentive plan
—
—
893
Amortization and depreciation
43,005
2,584
19,132
Impairment - decommission of cell
sites
1,975
530
2,570
Total operating expenses
188,966
7,458
59,378
Operating loss
(126,662
)
(656
)
(3,998
)
Other income (expense):
Realized and unrealized (loss) gain on
foreign currency debt
(40,434
)
11,500
(6,118
)
Interest expense, net
(25,201
)
(3,623
)
(32,038
)
Other income (expense), net
1,916
(277
)
177
Gain on extinguishment of debt
1,264
—
—
Total other income (expense), net
(62,455
)
7,600
(37,979
)
Income (loss) before income tax
expense
(189,117
)
6,944
(41,977
)
Income tax expense
2,825
767
2,468
Net income (loss)
(191,942
)
$
6,177
$
(44,445
)
Net loss attributable to
noncontrolling
interest
(9,851
)
Net loss attributable to Radius Global
Infrastructure, Inc. common
shareholders
$
(182,091
)
Loss per common share:
Basic and diluted
$
(3.12
)
Weighted average common shares
outstanding:
Basic and diluted
58,425,000
RADIUS GLOBAL INFRASTRUCTURE,
INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and
per share amounts)
Successor
Predecessor
December 31,
2020
December 31,
2019
Assets
Current assets:
Cash and cash equivalents
$
99,896
$
62,892
Restricted cash
1,614
1,140
Trade receivables, net
7,829
7,578
Prepaid expenses and other current
assets
17,352
9,199
Total current assets
126,691
80,809
Real property interests, net:
Right-of-use assets - finance leases,
net
237,862
80,498
Cell site leasehold interests, net
851,529
346,662
Real property interests, net
1,089,391
427,160
Intangible assets, net
5,880
2,848
Property and equipment, net
1,382
1,095
Goodwill
80,509
—
Deferred tax asset
1,173
991
Restricted cash, long-term
113,938
14,014
Other long-term assets
9,266
5,892
Total assets
$
1,428,230
$
532,809
Liabilities and Stockholders’
Equity/Members’ Deficit
Current liabilities:
Accounts payable and accrued expenses
$
30,854
$
22,786
Rent received in advance
19,587
13,856
Finance lease liabilities, current
9,920
5,749
Cell site leasehold interest liabilities,
current
5,749
8,379
Current portion of long-term debt, net of
deferred financing costs
—
48,884
Total current liabilities
66,110
99,654
Finance lease liabilities
23,925
10,451
Cell site leasehold interest
liabilities
11,813
8,462
Long-term debt, net of debt discount and
deferred financing costs
728,473
524,047
Deferred tax liability
57,137
—
Other long-term liabilities
8,704
5,531
Total liabilities
896,162
648,145
Commitments and contingencies
Stockholders’ equity/Members’ deficit:
Series A Founder Preferred Shares
(Successor), no par value; 1,600,000 shares authorized;
1,600,000 shares issued and outstanding as
of December 31, 2020
—
—
Series B Founder Preferred Shares
(Successor), no par value; 1,386,033 shares authorized;
1,386,033 shares issued and outstanding as
of December 31, 2020
—
—
Class A Shares (Successor), no par value;
1,590,000,000 shares authorized;
58,425,000 shares issued and outstanding
as of December 31, 2020
—
—
Class B Shares (Successor), no par value;
200,000,000 shares authorized;
11,414,030 shares issued and outstanding
as of December 31, 2020
—
—
Class A units (Predecessor)
—
33,672
Common units (Predecessor)
—
85,347
Additional paid-in capital (Successor)
673,955
—
Members’ accumulated deficit
(Predecessor)
—
(208,883
)
Members’ accumulated other comprehensive
loss (Predecessor)
—
(25,472
)
Accumulated other comprehensive loss
(Successor)
15,768
—
Accumulated deficit (Successor)
(213,237
)
—
Total stockholders’ equity attributable to
Radius Global Infrastructure, Inc./
members’ deficit
476,486
(115,336
)
Noncontrolling interest
55,582
—
Total liabilities and stockholders’
equity/members' deficit
$
1,428,230
$
532,809
RADIUS GLOBAL INFRASTRUCTURE,
INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands, except share and
per share amounts)
Successor
Predecessor
Period from
February 10,
2020 to
December 31,
2020
Period from
January 1,
2020 to
February 9,
2020
Year
ended
December 31,
2019
Cash flows from operating
activities:
Net income (loss)
$
(191,942
)
$
6,177
$
(44,445
)
Adjustments to reconcile net income (loss)
to net cash used in
operating activities:
Amortization and depreciation
43,005
2,584
19,132
Amortization of finance lease and cell
site leasehold interest
liabilities discount
1,279
213
2,097
Impairment – decommission of cell
sites
1,975
530
2,570
Realized and unrealized loss (gain) on
foreign currency debt
40,434
(11,500
)
6,118
Amortization of debt discount and deferred
financing costs
192
280
2,920
Provision for bad debt expense
323
26
761
Share-based compensation
83,421
—
—
Deferred income taxes
(962
)
339
(570
)
Gain on extinguishment of debt
(1,264
)
—
—
Change in assets and liabilities:
Trade receivables, net
(53
)
(682
)
(2,492
)
Prepaid expenses and other assets
(5,911
)
935
(6,428
)
Accounts payable, accrued expenses and
other long-term liabilities
(15,316
)
(4,605
)
11,228
Rent received in advance
2,282
2,251
2,520
Net cash used in operating activities
(42,537
)
(3,452
)
(6,589
)
Cash flows from investing
activities:
Cash paid in APW Acquisition, net of cash
acquired
(277,065
)
—
—
Investments in real property interests and
related intangible assets
(175,665
)
(5,064
)
(78,052
)
Consolidation of variable interest
entity
—
—
4,457
Advances on note receivable
(2,500
)
(17,500
)
—
Payments received on note receivable
20,000
—
—
Purchases of property and equipment
(1,049
)
(40
)
(317
)
Net cash used in investing activities
(436,279
)
(22,604
)
(73,912
)
Cash flows from financing
activities:
Borrowings under the Facility
Agreement
160,475
—
75,480
Proceeds from term loans and other debt
agreements
3,245
—
18,600
Repayments of term loans and other
debt
(48,065
)
(250
)
(19,350
)
Debt issuance costs
(3,721
)
—
(3,031
)
Repayments of finance lease and cell site
leasehold interest liabilities
(12,081
)
(3,149
)
(12,601
)
Net cash provided by (used in) financing
activities
99,853
(3,399
)
59,098
Net change in cash and cash equivalents
and restricted cash
(378,963
)
(29,455
)
(21,403
)
Effect of change in foreign currency
exchange rates on cash and
restricted cash
5,783
(232
)
(1,965
)
Cash and cash equivalents and restricted
cash at beginning of period
588,628
78,046
101,414
Cash and cash equivalents and restricted
cash at end of period
$
215,448
$
48,359
$
78,046
Supplemental disclosure of cash and
non-cash transactions:
Cash paid for interest
$
22,574
$
4,684
$
28,781
Debt issuance costs incurred but not
paid
$
—
$
—
$
779
Cash paid for income taxes
$
2,748
$
1,112
$
1,080
Non-GAAP Financial Measures
We identify certain additional financial measures not defined by
GAAP that provide supplemental information we believe is useful to
analysts and investors to evaluate our financial performance and
ongoing results of operations, when considered alongside other GAAP
measures such as net income, operating income, gross profit and net
cash provided by operating activities. These non-GAAP measures
exclude the financial impact of items management does not consider
in assessing our ongoing operating performance, and thereby
facilitate review of our operating performance on a
period-to-period basis.
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA is
defined as net income (loss) before net interest expense, income
tax expense, and depreciation and amortization. Adjusted EBITDA is
calculated by taking EBITDA and further adjusting for management
incentive plan expense, non-cash impairment—decommission of cell
sites expense, realized and unrealized gains and losses on foreign
currency debt, unrealized foreign exchange gains/losses associated
with intercompany account balances denominated in a currency other
than the functional currency, nonrecurring expenses incurred in
connection with the Domestication, costs recorded in selling,
general and administrative expenses incurred for incremental
acquisition pursuit (successful and unsuccessful) and integration,
and nonrecurring severance costs included in selling, general and
administrative expenses. Management believes the presentation of
EBITDA and Adjusted EBITDA provides valuable additional information
for users of the financial statements in assessing our financial
condition and results of operations. Each of EBITDA and Adjusted
EBITDA has important limitations as analytical tools because they
exclude some, but not all, items that affect net income, therefore
the calculation of these financial measures may be different from
the calculations used by other companies and comparability may
therefore be limited. You should not consider EBITDA, Adjusted
EBITDA or any of our other non-GAAP financial measures as an
alternative or substitute for our results.
The following are reconciliations of EBITDA and Adjusted EBITDA
to net income (loss), the most comparable GAAP measure:
Successor
Predecessor
(in thousands)
Period from
February 10 -
December 31,
2020
Period from
January 1 -
February 9,
2020
Year Ended
December 31,
2019
(unaudited)
Net income (loss)
$
(191,942
)
$
6,177
$
(44,445
)
Amortization and depreciation
43,005
2,584
19,132
Interest expense, net
25,201
3,623
32,038
Income tax expense
2,825
767
2,468
EBITDA
(120,911
)
13,151
9,193
Impairment—decommission of cell sites
1,975
530
2,570
Realized/unrealized loss (gain) on
foreign
currency debt
40,434
(11,500
)
6,118
Share-based compensation expense
83,421
—
—
Management incentive plan expense
—
—
893
Non-cash foreign currency adjustments
615
523
(632
)
Nonrecurring domestication and public
company
registration expenses
8,439
—
—
Transaction-related costs
1,860
—
—
One-time severance expense
—
—
2,331
Adjusted EBITDA
$
15,833
$
2,704
$
20,473
Acquisition Capex
Acquisition Capex is a non-GAAP financial measure. The Company’s
payments for its acquisitions of real property interests consist of
either a one-time payment upon the acquisition or up-front payments
with contractually committed payments made over a period of time,
pursuant to each cell site leasehold interest agreement. In all
cases, the Company contractually acquires all rights associated
with the underlying revenue-producing assets upon entering into the
agreement to purchase the real property interest and records the
related assets in the period of acquisition. Acquisition Capex
therefore represents the total cash spent and committed to be spent
for the Company’s acquisitions of revenue-producing assets during
the period measured. Management believes the presentation of
Acquisition Capex provides valuable additional information for
users of the financial statements in assessing our financial
performance and growth, as it is a comprehensive measure of our
investments in the revenue-producing assets that we acquire in a
given period. Acquisition Capex has important limitations as an
analytical tool, because it excludes certain fixed and variable
costs related to our selling and marketing activities included in
selling, general and administrative expenses in the consolidated
statements of operations, including corporate overhead expenses.
Further, this financial measure may be different from calculations
used by other companies and comparability may therefore be limited.
You should not consider Acquisition Capex or any of the other
non-GAAP measures we utilize as an alternative or substitute for
our results.
The following is a reconciliation of Acquisition Capex to the
amounts included as an investing cash flow in our consolidated
statements of cash flows for investments in real property interests
and related intangible assets, the most comparable GAAP measure,
which generally represents up-front payments made in connection the
acquisition of these assets during the period. The primary
adjustment to the comparable GAAP measure is “committed contractual
payments for investments in real property interests and intangible
assets”, which represents the total amount of future payments that
we were contractually committed to make in connection with our
acquisitions of real property interests and intangible assets that
occurred during the period. Additionally, foreign exchange
translation adjustments impact the determination of Acquisition
Capex.
Successor
Predecessor
(in thousands)
Period from
February 10 -
December 31,
2020
Period from
January 1 -
February 9,
2020
Year Ended
December 31,
2019
(unaudited)
Investments in real property interests and
related
intangible assets
$
175,665
$
5,064
$
78,052
Committed contractual payments for
investments
in real property interests and intangible
assets
30,073
1,533
20,188
Foreign exchange translation impacts and
other
8,677
(262
)
686
Acquisition Capex
$
214,415
$
6,335
$
98,926
Annualized In-Place Rents
Annualized in-place rents is a non-GAAP measure that measures
performance based on annualized contractual revenue from the rents
expected to be collected on leases owned and acquired (“in place”)
as of the measurement date. Annualized in-place rents is calculated
using the implied monthly revenue from all revenue producing leases
that are in place as of the measurement date multiplied by twelve.
Implied monthly revenue for each lease is calculated based on the
most recent rental payment made under such lease. Management
believes the presentation of annualized in-place rents provides
valuable additional information for users of the financial
statements in assessing our financial performance and growth. In
particular, management believes the presentation of annualized
in-place rents provides a measurement at the applicable point of
time as opposed to revenue, which is recorded in the applicable
period on revenue-producing assets in place as they are acquired.
Annualized in-place rents has important limitations as an
analytical tool because it is calculated at a particular moment in
time, the measurement date, but implies an annualized amount of
contractual revenue. As a result, following the measurement date,
among other things, the underlying leases used in calculating the
annualized in-place rents financial measure may be terminated, new
leases may be acquired, or the contractual rents payable under such
leases may not be collected. In these respects, among others,
annualized in-place rents differs from “revenue”, which is the
closest comparable GAAP measure and which represents all revenues
(contractual or otherwise) earned over the applicable period.
Revenue is recorded as earned over the period in which the lessee
is given control over the use of the wireless communication sites
and recorded over the term of the lease. You should not consider
annualized in-place rents or any of the other non-GAAP measures we
utilize as an alternative or substitute for our results. The
following is a comparison of annualized in-place rents to revenue,
the most comparable GAAP measure:
Successor
Predecessor
(in thousands)
Period from
February 10 -
December 31,
2020
Period from
January 1 -
February 9,
2020
Year Ended
December 31,
2019
Revenue for year ended December 31
$
62,923
$
6,836
$
55,706
Annualized in-place rents as of December
31
$
84,071
$
62,095
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210330005086/en/
Investor Relations: ICR Inc. Evelyn Infurna/Nikki Sacks
Email: investorrelations@radiusglobal.com Phone: 1-484-278-2667
Media: Sard Verbinnen & Co Jim Barron/Jared Levy Email:
Radius-SVC@sardverb.com 212-687-8080
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