CROWN CASTLE INTERNATIONAL CORP - 8-K - 20040730 - EXHIBIT_99
[Crown Castle Letterhead]
Exhibit 99.1
New Release
Contacts:
W. Benjamin Moreland, CFO
Jay Brown, Treasurer
Crown Castle International Corp.
713-570-3000
CROWN CASTLE
INTERNATIONAL
REPORTS SECOND QUARTER 2004 RESULTS
July 28, 2004 – HOUSTON, TEXAS – Crown Castle International Corp. (NYSE:CCI) today reported results for the second quarter ended
June 30, 2004. Results from Crown Castle’s UK subsidiary have been classified as discontinued operations, pending the closing of the previously announced sale.
Site rental revenue for the second quarter of 2004 increased 12.7 percent to $131.4 million, up $14.8 million from $116.6
million for the same period in the prior year. Operating income improved to $3.5 million in the second quarter of 2004 from $(10.0) million in the second quarter of 2003, an increase of $13.5 million.
Net loss was $39.6 million for the second quarter of 2004 compared to a net
loss of $80.8 million for the same period in 2003. Net loss after deduction of dividends on preferred stock was $48.9 million in the second quarter of 2004 compared to a loss of $100.9 million for the same period last year. Second quarter net loss
per share was $(0.22) compared to a loss per share of $(0.47) in last year’s second quarter.
OPERATING RESULTS
US
site rental revenue for the second quarter of 2004 increased $10.3 million, or 9.3 percent, to $120.8 million, from $110.5 million for the same period in 2003. US site rental gross margin, defined as site rental revenue less site rental cost of
operations, increased 13.0% to $82.5 million, up $9.5 million in the second quarter of 2004 from the same period in 2003. On a consolidated basis, site rental gross margin, defined as site rental revenue less site rental cost of operations,
increased 16.8% to $89.5 million, up $12.9 million in the second quarter of 2004 from the same period in 2003. These results approximate same tower sales and gross margin as over 99% of Crown Castle’s sites were in operation for the 12 months
preceding June 30, 2004.
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“We are very pleased with the second quarter results and the growth we continue to see in our core business,” stated John P. Kelly, President
and Chief Executive Officer of Crown Castle. “In the past year, we have achieved $51.6 million growth in annualized recurring gross margin on $54.4 million of additional annualized recurring revenue, while total general and administrative costs
have remained unchanged. Based on our signed leases to date and our expected leasing during the second half of the year, we expect US leasing to increase approximately 25% this year compared to last year.”
Net cash from operating activities for the second quarter of 2004 was $35.2
million. Free cash flow, defined as net cash from operating activities less capital expenditures, was a source of cash of $22.6 million for the second quarter of 2004. For the second quarter of 2004, total capital expenditures were $12.7 million,
comprised of $3.5 million of maintenance capital expenditures and $9.2 million of revenue generating capital expenditures. Crown Castle had $232.5 million of cash and cash equivalents as of June 30, 2004.
SALE OF UK SUBSIDIARY
On June 28, 2004, Crown Castle announced it had signed a definitive agreement to sell its UK subsidiary to National Grid
Transco Plc for $2.035 billion in cash. Crown Castle will use approximately $1.3 billion of the proceeds from the transaction to fully repay Crown Castle Operating Company’s credit facility. Crown Castle expects to use the remaining net
proceeds of approximately $740 million to repay debt or to invest in new business opportunities in the US.
As a result of the announced transaction, Crown Castle’s UK operations have been classified as discontinued operations. The closing date of the
transaction, subject to certain approvals, is expected to be on or before September 30, 2004.
“We are continuing to proceed with closing the sale of the UK business,” stated W. Benjamin Moreland, Chief Financial Officer of Crown Castle. “We are finalizing a refinancing plan for the new balance
sheet that we are targeting will deliver significant interest expense savings by January 1, 2005.”
OUTLOOK
The following
statements and outlook table are based on current expectations and assumptions and assume a US dollar to Australian dollar exchange rate of 0.70 US dollars to 1.00 Australian dollar. This Outlook section contains forward-looking statements, and
actual results may differ materially. Information regarding potential risks which could cause actual results to
Page 3 of 10
differ from the forward-looking statements herein are set forth below and in Crown Castle’s filings with the Securities and Exchange Commission.
Crown Castle has increased its 2004 Outlook for Site Rental Revenue from
between $524 million and $528 million to between $525 million and $530 million and Adjusted EBITDA from between $270 million and $280 million to between $280 million and $287 million. Based primarily on increased leasing activity, Crown Castle has
raised its 2004 outlook for revenue generating capital expenditures from between $23 million and $30 million to between $33 million and $40 million.
The following table sets forth Crown Castle’s current outlook for the third quarter and full year 2004 (
dollars in millions
):
Third Quarter
2004
Full Year
2004
Site Rental Revenue
$
134 to 136
$
525 to 530
Adjusted EBITDA
$
70 to 73
$
280 to 287
Maintenance capital expenditures
$
2 to 3
$
7 to 10
Revenue generating capital expenditures
$
13 to 15
$
33 to 40
The following table sets forth Crown
Castle’s current outlook for 2005
(dollars in millions)
:
2005 Outlook
Site Rental Revenue
$
565 to 575
Adjusted EBITDA
$
310 to 320
Net cash provided by operating activities
$
225 to 245
Maintenance capital expenditures
$
7 to 10
Revenue generating capital expenditures
$
23 to 30
Free cash flow
$
195 to 215
The Outlook above does
not include results from our UK subsidiary. Crown Castle has not issued 2004 Outlook for net cash provided by operating activities and free cash flow because of the impact the timing of the expected closing of the sale of the UK subsidiary will have
on 2004 interest expense. Crown Castle’s 2005 Outlook for net cash provided by operating activities includes expected savings from interest expense reductions that may be achieved through refinancings and further debt reductions associated with
the application of sales proceeds and cash
Page 4 of 10
balances, and refinancings. Free cash flow is defined as net cash provided by operating activities less all capital expenditures (both maintenance and revenue generating
capital expenditures).
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, July 29, 2004, at
9:30 a.m. eastern time to discuss second quarter results and Crown Castle’s Outlook. Please dial 303-205-0044 and ask for the Crown Castle call at least 10 minutes prior to the start time. A telephonic replay of the conference call will be
available from 11:30 a.m. eastern time on Thursday, July 29, 2004, through 11:59 p.m. eastern time on Thursday, August 5, 2004, and may be accessed by dialing 303-590-3000 using passcode 11003229#. An audio archive will also be available on the
company’s website at
http://www.crowncastle.com
shortly after the call and will be accessible for approximately 90 days.
Pro forma for the previously announced sale of Crown Castle UK, Crown Castle International Corp. engineers, deploys, owns and operates technologically
advanced shared wireless infrastructure, including extensive networks of towers and rooftops. Crown Castle offers significant wireless communications coverage to 68 of the top 100 United States markets and to substantially all of the Australian
population. Crown Castle owns, operates and manages over 10,600 and over 1,300 wireless communication sites in the U.S. and Australia, respectively. For more information on Crown Castle visit:
http://www.crowncastle.com.
Non-GAAP Financial Measures:
This press release includes presentations of Free Cash Flow and Adjusted EBITDA, which are
non-GAAP financial measures. Crown Castle defines Free Cash Flow as net cash provided by operating activities less capital expenditures (both amounts from the Consolidated Statement of Cash Flows). Crown Castle defines Adjusted EBITDA as net loss
plus cumulative effect of change in accounting principle, income (loss) from discontinued operations, minority interests, provision for income taxes, interest expense, amortization of deferred financing costs and dividends on preferred stock,
interest and other income (expense), depreciation, amortization and accretion, non-cash general and administrative compensation charges, asset write-down charges and restructuring charges (credits). Free Cash Flow and Adjusted EBITDA are not
intended as alternative measures of operating results or cash flow from operations (as determined in accordance with generally accepted accounting principles). Further, our measure of Free Cash Flow and Adjusted EBITDA may not be comparable to
similarly titled measures of other companies. Free Cash Flow is presented as additional information because management believes it to be a useful indicator of our ability to execute our business strategy without reliance on additional borrowing or
the use of our cash and cash equivalents. Adjusted EBITDA is presented as additional information because management believes it to be a useful indicator of the current financial performance of our core businesses. In addition, Adjusted EBITDA is the
measure of current financial performance generally used in our debt covenant calculations. The tables set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures. Our results under GAAP are set forth in the
financial statements following this press release.
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Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Free Cash Flow is computed as follows:
(In thousands of dollars)
For the Three Months
Ended
June 30,
2004
June 30,
2003
Net cash provided by operating activities
$
35,232
$
29,600
Less: Capital expenditures
(12,681
)
(7,989
)
Free Cash Flow
$
22,551
$
21,611
Free Cash Flow for the year
ending December 31, 2005 is forecasted as follows:
(in millions of dollars)
Full Year 2005
Outlook
Net cash provided by operating activities
$
225.0 to 245.0
Less: Capital expenditures
$
(30.0) to (40.0)
Free Cash Flow
$
195.0 to 215.0
Adjusted EBITDA is computed as
follows:
(in thousands of dollars)
Three Months Ended
June 30,
2004
2003
Net loss
$
(39,594
)
$
(80,831
)
Income from discontinued operations, net of tax
(16,455
)
(2,099
)
Minority interests
1,463
730
Provision for income taxes
184
127
Interest expense and amortization of deferred financing costs
56,568
63,809
Interest and other income (expense)
1,349
8,271
Depreciation, amortization and accretion
61,119
60,763
Non-cash general and administrative compensation charges
6,203
5,834
Asset write-down charges
1,868
1,380
Restructuring charges (credits)
—
2,349
Adjusted EBITDA
$
72,705
$
60,333
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Adjusted EBITDA for the quarter ending September 30, 2004 is forecasted as follows:
(in millions of dollars)
Q3 2004
Outlook
Net income (loss)
$
527.0 to 557.0
Cumulative effect of change in accounting principle
—
Income from discontinued operations
(560.0) to (630.0
)
Minority interests
0.5 to 2.5
Provision for income taxes
0.1 to 0.2
Interest expense, amortization of deferred financing costs
and dividends on preferred stock
55.0 to 59.0
Interest and other (income) expense
1.0 to 2.5
Depreciation, amortization and accretion
60.0 to 62.0
Non-cash general and administrative compensation charges
1.4 to 1.5
Asset write-down charges
1.5 to 2.0
Restructuring charges
—
Adjusted EBITDA
$
70.0 to 73.0
Adjusted EBITDA for the year
ending December 31, 2004 and the year ending December 31, 2005 is forecasted as follows:
(in millions of dollars)
Full Year 2004
Outlook
Full Year 2005
Outlook
Net income (loss)
$
326.9 to 480.0
$(21.3) to (51.3)
Cumulative effect of change in accounting principle
—
—
Income from discontinued operations
(560.0) to (630.0
)
—
Minority interests
(1.0) to 4.0
(1.0) to 4.0
Provision for income taxes
0.5 to 1.0
0.0 to 2.0
Interest expense, amortization of deferred financing costs
and dividends on preferred stock
183.3 to 207.0
71.5 to 81.5
Interest and other (income) expense
19.8 to 26.2
19.8 to 23.8
Depreciation, amortization and accretion
221.0 to 251.0
221.0 to 251.0
Non-cash general and administrative compensation charges
12.0 to 14.0
12.0 to 14.0
Asset write-down charges
3.8 to 7.6
1.9 to 3.0
Restructuring charges
—
—
Adjusted EBITDA
$
280.0 to 287.0
$310.0 to 320.0
Cautionary Language
Regarding Forward-Looking Statements
This press release contains
forward-looking statements and information that are based on our management’s current expectations. Such statements include, but are not limited to plans, projections and estimates regarding (i) demand and leasing rates for our sites and
towers, (ii) our ability to close the sale of our UK business (“UK Transaction”) in the time frame anticipated or at all, (iii) the use of proceeds from the UK Transaction, (iv) the effect of the UK Transaction on our financial and
operating position, (v) potential refinancing plans, (vi) potential interest expense reduction, (vii) currency exchange rates, (viii) revenues, (ix) net cash provided by operating activities, (x) adjusting EBITDA (xi) capital expenditures, and (xii)
free cash flow, including free cash flow per share. Such forward-looking statements are
Page 7 of 10
subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and the following:
Ø
Our substantial level of indebtedness may adversely affect our ability to react to changes in our business and limit our ability to use debt to fund future capital needs.
Ø
Restrictive covenants on our debt instruments may limit our ability to take actions that may be in our best interests. If we fail to comply with our covenants, our debt may be
accelerated.
Ø
Our business depends on the demand for wireless communications and towers, and we may be adversely affected by any slowdown in such demand.
Ø
The loss, consolidation, network sharing or financial instability of any of our limited number of customers may materially decrease revenues.
Ø
An economic or wireless telecommunications industry slowdown may materially and adversely affect our business and the business of our customers.
Ø
We operate in a competitive industry and some of our competitors have significantly more resources or less debt than we do.
Ø
Technology changes may significantly reduce the demand for site leases and negatively impact our revenues.
Ø
2.5G/3G and other technologies, including digital terrestrial television, may not deploy or be adopted by customers as rapidly or in the manner projected.
Ø
We generally lease or sublease the land under our sites and towers and may not be able to maintain these leases.
Ø
Our international operations expose us to changes in foreign currency exchange rates.
Ø
We may need additional financing, which may not be available for strategic growth opportunities or contractual obligations.
Ø
Fluctuations in market interest rates may increase interest expense relating to our floating rate indebtedness.
Ø
Laws and regulations, which may change at any time and with which we may fail to comply, regulate our business.
Ø
Our network services business has historically experienced significant volatility in demand, which reduces the predictability of our results.
Ø
We are heavily dependent on our senior management.
Ø
We may suffer from future claims if radio frequency emissions from equipment on our sites and towers are demonstrated to cause negative health effects.
Ø
Certain provisions of our certificate of incorporation, bylaws and operative agreements and domestic and international competition laws may make it more difficult for a third party
to acquire control of us or for us to acquire control of a third party, even if such a change in control would be beneficial to our stockholders.
Ø
Sales or issuances of a substantial number of shares of our common stock may adversely affect the market price of our common stock.
Ø
Disputes with customers and suppliers may adversely affect results.
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.
Page 8 of 10
Crown Castle International Corp.
Condensed Consolidated Statement
of Operations
And Other Financial Data
(in
thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2004
2003
2004
2003
Net revenues:
Site rental
$
131,363
$
116,646
$
260,332
$
230,481
Network services and other
18,513
19,629
33,216
36,548
Total net revenues
149,876
136,275
293,548
267,029
Costs of operations:
Site rental
41,843
39,985
82,778
80,593
Network services and other
12,272
12,819
23,268
24,430
Total costs of operations
54,115
52,804
106,046
105,023
General and administrative
22,685
22,220
44,295
42,738
Corporate development
371
918
810
2,538
Restructuring charges (credits)
—
2,349
(33
)
2,349
Asset write-down charges
1,868
1,380
3,816
1,380
Non-cash general and administrative compensation charges
6,203
5,834
8,418
7,728
Depreciation, amortization and accretion
61,119
60,763
122,344
122,226
Operating income (loss)
3,515
(9,993
)
7,852
(16,953
)
Interest and other income (expense)
(1,349
)
(8,271
)
(26,376
)
(10,834
)
Interest expense and amortization of deferred financing costs
(56,568
)
(63,809
)
(113,890
)
(127,520
)
Loss from continuing operations before income taxes, minority interests and cumulative effect of change in accounting
principle
(54,402
)
(82,073
)
(132,414
)
(155,307
)
Provision for income taxes
(184
)
(127
)
(337
)
(243
)
Minority interests
(1,463
)
(730
)
(2,809
)
(1,287
)
Loss from continuing operations before cumulative effect of change in accounting principle
(56,049
)
(82,930
)
(135,560
)
(156,837
)
Income from discontinued operations, net of tax
16,455
2,099
30,999
7,541
Loss before cumulative effect of change in accounting principle
(39,594
)
(80,831
)
(104,561
)
(149,296
)
Cumulative effect of change in accounting principle for asset retirement obligations
—
—
—
(551
)
Net loss
(39,594
)
(80,831
)
(104,561
)
(149,847
)
Dividends on preferred stock, net of gains (losses) on purchases of preferred stock
(9,332
)
(20,081
)
(19,028
)
(34,452
)
Net loss after deduction of dividends on preferred stock, net of gains (losses) on purchases of preferred stock
$
(48,926
)
$
(100,912
)
$
(123,589
)
$
(184,299
)
Per common share – basic and diluted:
Loss from continuing operations before cumulative effect of change in accounting principle
$
(0.29
)
$
(0.48
)
$
(0.70
)
$
(0.88
)
Income from discontinued operations
0.07
0.01
0.14
0.03
Cumulative effect of change in accounting principle
—
—
—
—
Net loss
$
(0.22
)
$
(0.47
)
$
(0.56
)
$
(0.85
)
Common shares outstanding – basic and diluted
221,853
215,969
220,574
216,464
Adjusted EBITDA (before restructuring and asset write-down charges):
Site rental
$
82,197
$
69,933
$
163,609
$
136,881
Network services and other (before corporate development expenses)
(9,121
)
(8,682
)
(20,402
)
(17,613
)
Adjusted EBITDA before corporate development expenses
73,076
61,251
143,207
119,268
Corporate development
(371
)
(918
)
(810
)
(2,538
)
Total Adjusted EBITDA
$
72,705
$
60,333
$
142,397
$
116,730
Page 9 of 10
Crown Castle International Corp.
Condensed Consolidated Balance
Sheet
(in thousands)
June 30,
2004
December 31,
2003
ASSETS
Current assets:
Cash and cash equivalents
$
232,503
$
462,427
Receivables, net of allowance for doubtful accounts
35,652
38,219
Inventories
9,308
9,615
Prepaid expenses and other current assets
30,714
32,133
Assets of discontinued operations
2,020,628
2,026,267
Total current assets
2,328,805
2,568,661
Property and equipment, net of accumulated depreciation
3,622,355
3,755,073
Goodwill
267,071
267,071
Deferred financing costs and other assets, net of accumulated amortization
151,975
146,786
$
6,370,206
$
6,737,591
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
9,060
$
9,785
Accrued interest
43,705
49,063
Accrued compensation and related benefits
10,392
13,397
Deferred rental revenues and other accrued liabilities
97,043
106,384
Liabilities of discontinued operations
355,072
353,544
Long-term debt, current maturities
1,275,385
267,142
Total current liabilities
1,790,657
799,315
Long-term debt, less current maturities
1,898,752
3,182,850
Other liabilities
52,803
55,978
Total liabilities
3,742,212
4,038,143
Minority interests
207,700
208,333
Redeemable preferred stock
507,371
506,702
Stockholders’ equity
1,912,923
1,984,413
$
6,370,206
$
6,737,591
Page 10 of 10
Crown Castle International Corp.
Condensed Consolidated Statement
of Cash flows
Three Months Ended
June 30,
2004
2003
Cash flows from operating activities:
Net loss
$
(39,594
)
$
(80,831
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization and accretion
61,119
60,763
Non-cash general and administrative compensation charges
6,203
5,834
Amortization of deferred financing costs and discounts on long-term debt
2,813
17,378
Asset write-down charges
1,868
1,380
Minority interests and loss on issuance of interest in joint venture
1,463
8,844
Equity in losses (earnings) and write-downs of unconsolidated affiliates
1,405
1,380
Income from discontinued operations
(16,455
)
(2,099
)
Changes in assets and liabilities:
Increase in accrued interest
12,475
14,079
Increase in deferred rental revenues and other liabilities
3,275
1,128
Decrease in inventories, prepaid expenses and other assets
1,091
2,980
Increase (decrease) in accounts payable
924
(4,427
)
(Increase) decrease in receivables
(1,355
)
3,191
Net cash provided by operating activities
35,232
29,600
Cash flows from investing activities:
Proceeds from disposition of property and equipment
1,065
—
Capital expenditures
(12,681
)
(7,989
)
Investments in affiliates and other
(305
)
(12,973
)
Maturities of investments
—
14,808
Acquisition of minority interest in joint venture
—
(5,873
)
Net cash used for investing activities
(11,921
)
(12,027
)
Cash flows from financing activities:
Proceeds from issuance of capital stock
22,711
896
Purchases of capital stock
(12,901
)
(38,688
)
Principal payments on long-term debt
(11,615
)
(4,750
)
Net borrowings (payments) under revolving credit agreements
—
(10,000
)
Net cash used for financing activities
(1,805
)
(52,542
)
Effect of exchange rate changes on cash
(1,185
)
2,026
Discontinued operations
40,697
15,695
Net increase (decrease) in cash and cash equivalents
61,018
(17,248
)
Cash and cash equivalents at beginning of period
171,485
476,950
Cash and cash equivalents at end of period
$
232,503
$
459,702
Supplemental disclosure of cash flow information:
Interest paid
$
40,065
$
32,319
Income taxes paid
184
126
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 9/30/03
Quarter Ended 12/31/03
US
AUS
CCIC
US
AUS
CCIC
Revenues
Site Rental
113,387
6,740
120,127
117,686
7,860
125,546
Services
16,361
1,035
17,396
17,561
811
18,372
Total Revenues
129,748
7,775
137,523
135,247
8,671
143,918
Operating Expenses
Site Rental
37,298
2,764
40,062
39,353
3,167
42,520
Services
9,668
510
10,178
11,604
534
12,138
Total Operating Expenses
46,966
3,274
50,240
50,957
3,701
54,658
General & Administrative
Site Rental
4,319
2,037
6,356
4,889
2,451
7,340
Services
15,066
—
15,066
15,561
—
15,561
Total General & Administrative
19,385
2,037
21,422
20,450
2,451
22,901
Operating Cash Flow
Site Rental
71,770
1,939
73,709
73,444
2,242
75,686
Services
(8,373
)
525
(7,848
)
(9,604
)
277
(9,327
)
Total Pre-Overhead Cash Flow
63,397
2,464
65,861
63,840
2,519
66,359
Corporate Overhead
1,039
—
1,039
1,987
—
1,987
Adjusted EBITDA
62,358
2,464
64,822
61,853
2,519
64,372
Quarter Ended 9/30/03
Quarter Ended 12/31/03
US
AUS
CCIC
US
AUS
CCIC
Gross Margins:
Site Rental
67
%
59
%
67
%
67
%
60
%
66
%
Services
41
%
51
%
41
%
34
%
34
%
34
%
Operating Cash Flow Margins
Site Rental
63
%
29
%
61
%
62
%
29
%
60
%
Services
-51
%
51
%
-45
%
-55
%
34
%
-51
%
Adjusted EBITDA Margin
48
%
32
%
47
%
46
%
29
%
45
%
Quarter Ended 3/31/04
Quarter Ended 6/30/04
US
AUS
CCIC
US
AUS
CCIC
Revenues
Site Rental
120,695
8,274
128,969
120,827
10,536
131,363
Services
13,499
1,204
14,703
17,390
1,123
18,513
Total Revenues
134,194
9,478
143,672
138,217
11,659
149,876
Operating Expenses
Site Rental
37,233
3,702
40,935
38,332
3,511
41,843
Services
10,268
728
10,996
11,591
681
12,272
Total Operating Expenses
47,501
4,430
51,931
49,923
4,192
54,115
General & Administrative
Site Rental
4,242
2,380
6,622
4,693
2,630
7,323
Services
14,988
—
14,988
15,362
—
15,362
Total General & Administrative
19,230
2,380
21,610
20,055
2,630
22,685
Operating Cash Flow
Site Rental
79,220
2,192
81,412
77,802
4,395
82,197
Services
(11,757
)
476
(11,281
)
(9,563
)
442
(9,121
)
Total Pre-Overhead Cash Flow
67,463
2,668
70,131
68,239
4,837
73,076
Corporate Overhead
439
—
43
371
—
371
Adjusted EBITDA
67,024
2,668
69,692
67,868
4,837
72,705
Quarter Ended 3/31/04
Quarter Ended 6/30/04
US
AUS
CCIC
US
AUS
CCIC
Gross Margins:
Site Rental
69
%
55
%
68
%
68
%
67
%
68
%
Services
24
%
40
%
25
%
33
%
39
%
34
%
Operating Cash Flow Margins
Site Rental
66
%
26
%
63
%
64
%
42
%
63
%
Services
-87
%
40
%
-77
%
-55
%
39
%
-49
%
Adjusted EBITDA Margin
50
%
28
%
49
%
49
%
41
%
49
%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
09/30/2003
12/31/2003
03/31/2004
06/30/2004
Net loss
$
(99,678
)
$
(148,840
)
$
(64,967
)
$
(39,594
)
Income from discontinued operations, net of tax
(5,076
)
2,159
(14,544
)
(16,455
)
Cumulative effect of change in accounting principle for asset retirement obligations, net of related income tax benefits
—
—
—
—
Minority interests
(151
)
1,258
1,346
1,463
Provision for income taxes
85
137
153
184
Interest expense, amortization of deferred financing costs and dividends on preferred stock
62,408
68,906
57,322
56,568
Interest and other income (expense)
35,104
72,521
25,027
1,349
Depreciation, amortization and accretion
60,846
61,378
61,225
61,119
Non-cash general and administrative compensation charges
6,205
53
2,215
6,203
Asset write-down charges
6,137
6,800
1,948
1,868
Restructuring charges (credits)
(1,058
)
—
(33
)
—
Adjusted EBITDA
$
64,822
$
64,372
$
69,692
$
72,705
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 9/30/03
Restricted
Crown
Atlantic
Other
CCIC
Revenues
Site Rental
94,620
25,507
—
120,127
Services
14,034
3,362
—
17,396
Total Revenues
108,654
28,869
—
137,523
Operating Expenses
Site Rental
31,162
8,900
—
40,062
Services
9,349
829
—
10,178
Total Operating Expenses
40,511
9,729
—
50,240
General & Administrative
Site Rental
5,899
457
—
6,356
Services
12,664
988
1,414
15,066
Total General & Administrative
18,563
1,445
1,414
21,422
Operating Cash Flow
Site Rental
57,559
16,150
—
73,709
Services
(7,979
)
1,545
(1,414
)
(7,848
)
Total Pre-Overhead Cash Flow
49,580
17,695
(1,414
)
65,861
Corporate Overhead
1,039
—
—
1,039
Adjusted EBITDA
48,541
17,695
(1,414
)
64,822
Quarter Ended 9/30/03
Restricted
Crown
Atlantic
Other
CCIC
Gross Margins:
Site Rental
67
%
65
%
—
67
%
Services
33
%
75
%
—
41
%
Operating Cash Flow Margins
Site Rental
61
%
63
%
—
61
%
Services
-57
%
46
%
—
-45
%
Adjusted EBITDA Margin
45
%
61
%
N/A
47
%
Quarter Ended 12/31/03
Restricted
Crown
Atlantic
Other
CCIC
Revenues
Site Rental
98,047
27,499
—
125,546
Services
15,227
3,145
—
18,372
Total Revenues
113,274
30,644
—
143,918
Operating Expenses
Site Rental
32,724
9,796
—
42,520
Services
10,010
2,128
—
12,138
Total Operating Expenses
42,734
11,924
—
54,658
General & Administrative
Site Rental
6,769
571
—
7,340
Services
12,680
1,198
1,683
15,561
Total General & Administrative
19,449
1,769
1,683
22,901
Operating Cash Flow
Site Rental
58,554
17,132
—
75,686
Services
(7,463
)
(181
)
(1,683
)
(9,327
)
Total Pre-Overhead Cash Flow
51,091
16,951
(1,683
)
66,359
Corporate Overhead
1,987
—
—
1,987
Adjusted EBITDA
49,104
16,951
(1,683
)
64,372
Quarter Ended 12/31/03
Restricted
Crown
Atlantic
Other
CCIC
Gross Margins:
Site Rental
67
%
64
%
—
66
%
Services
34
%
32
%
—
34
%
Operating Cash Flow Margins
Site Rental
60
%
62
%
—
60
%
Services
-49
%
-6
%
—
-51
%
Adjusted EBITDA Margin
43
%
55
%
N/A
45
%
Quarter Ended 3/31/04
Restricted
Crown
Atlantic
Other
CCIC
Revenues
Site Rental
100,896
28,073
—
128,969
Services
13,178
1,525
—
14,703
Total Revenues
114,074
29,598
—
143,672
Operating Expenses
Site Rental
31,427
9,508
—
40,935
Services
9,373
1,623
—
10,996
Total Operating Expenses
40,800
11,131
—
51,931
General & Administrative
Site Rental
6,163
459
—
6,622
Services
12,325
989
1,674
14,988
Total General & Administrative
18,488
1,448
1,674
21,610
Operating Cash Flow
Site Rental
63,306
18,106
—
81,412
Services
(8,520
)
(1,087
)
(1,674
)
(11,281
)
Total Pre-Overhead Cash Flow
54,786
17,019
(1,674
)
70,131
Corporate Overhead
439
—
—
439
Adjusted EBITDA
54,347
17,019
(1,674
)
69,692
Quarter Ended 3/31/04
Restricted
Crown
Atlantic
Other
CCIC
Gross Margins:
Site Rental
69
%
66
%
—
68
%
Services
29
%
-6
%
—
25
%
Operating Cash Flow Margins
Site Rental
63
%
64
%
—
63
%
Services
-65
%
-71
%
—
-77
%
Adjusted EBITDA Margin
48
%
58
%
N/A
49
%
Quarter Ended 6/30/04
Restricted
Crown
Atlantic
Other
CCIC
Revenues
Site Rental
103,650
27,713
—
131,363
Services
16,110
2,138
265
18,513
Total Revenues
119,760
29,851
265
149,876
Operating Expenses
Site Rental
32,561
9,282
—
41,843
Services
10,284
1,670
318
12,272
Total Operating Expenses
42,845
10,952
318
54,115
General & Administrative
Site Rental
6,847
476
—
7,323
Services
13,365
802
1,195
15,362
Total General & Administrative
20,212
1,278
1,195
22,685
Operating Cash Flow
Site Rental
64,242
17,955
—
82,197
Services
(7,539
)
(334
)
(1,248
)
(9,121
)
Total Pre-Overhead Cash Flow
56,703
17,621
(1,248
)
73,076
Corporate Overhead
371
—
—
371
Adjusted EBITDA
56,332
17,621
(1,248
)
72,705
Quarter Ended 6/30/04
Restricted
Crown
Atlantic
Other
CCIC
Gross Margins:
Site Rental
69
%
67
%
—
68
%
Services
36
%
22
%
-20
%
34
%
Operating Cash Flow Margins
Site Rental
62
%
65
%
—
63
%
Services
-47
%
-16
%
-471
%
-49
%
Adjusted EBITDA Margin
47
%
59
%
-471
%
49
%
Reconciliation of Non-GAAP Financial Measure (Adjusted EBITDA) to GAAP
Financial Measure:
(in $ thousands)
Quarter Ended
09/30/2003
12/31/2003
03/31/2004
06/30/2004
Net loss
$
(99,678
)
$
(148,840
)
$
(64,967
)
$
(39,594
)
Income from discontinued operations, net of tax
(5,076
)
2,159
(14,544
)
(16,455
)
Cumulative effect of change in accounting principle for asset retirement obligations, net of related income tax benefits
—
—
—
—
Minority interests
(151
)
1,258
1,346
1,463
Provision for income taxes
85
137
153
184
Interest expense, amortization of deferred financing costs and dividends on preferred stock
62,408
68,906
57,322
56,568
Interest and other income (expense)
35,104
72,521
25,027
1,349
Depreciation, amortization and accretion
60,846
61,378
61,225
61,119
Non-cash general and administrative compensation charges
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