“We delivered another terrific quarter of results, and remain on track to generate attractive growth in cash flows and dividends per share for the full year 2018,” said Jay Brown, Crown Castle’s Chief Executive Officer. “Over the past two decades, we have built and acquired an unmatched portfolio of more than 40,000 towers and 60,000 route miles of dense, high capacity fiber in the top U.S. markets, where we see the greatest long-term demand from multiple customers. With the positive momentum we continue to see in our towers and fiber segments, we remain dedicated to investing in our business to generate future growth while delivering near-term dividend per share growth of 7 percent to 8 percent per year,” Brown said. Crown executives will discuss the report at this morning’s web conference at 10:30 a.m. (EDT).
Highlights for the quarter from yesterday afternoon’s announcement:
- Site rental revenues. Site rental revenues grew approximately 35 percent, or $300 million, from second quarter 2017 to second quarter 2018, inclusive of approximately $49 million in Organic Contribution to Site Rental Revenues plus $231 million in contributions from acquisitions and other items, plus a $20 million increase in straight-lined revenues. The $49 million in Organic Contribution to Site Rental Revenues represents approximately 5.6 percent growth, comprised of approximately 8 percent growth from new leasing activity and contracted tenant escalations, net of approximately 2.5 percent from tenant non-renewals. When compared to the prior second quarter 2018 Outlook, site rental revenues benefited by approximately $9 million of additional straight-lined revenues primarily resulting from term extensions associated with leasing activity.
- Net income. Net income for second quarter 2018 was $180 million, compared to $112 million during the same period a year ago.
- Adjusted EBITDA. When compared to the second quarter 2018 Outlook, Adjusted EBITDA benefited by approximately $9 million of additional straight-lined revenues, partially offset by the timing of certain network services contribution that is now expected to contribute to Adjusted EBITDA during the remainder of 2018.
- Capital expenditures. Capital expenditures during the quarter were $393 million, comprised of $10 million of land purchases, $26 million of sustaining capital expenditures, $356 million of revenue generating capital expenditures and $1 million of integration capital expenditures.
July 19, 2018
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