Crown Castle International (NYSE:CCI) yesterday reported results for the quarter ended March 31, 2018.
“We continue to see tremendous activity across our unique portfolio of infrastructure assets. In our tower business, we have recently signed comprehensive leasing agreements with several of our largest customers, which we believe signals the beginning of a sustained period of infrastructure investments by our customers,” said Jay Brown, Crown Castle’s Chief Executive Officer.
HIGHLIGHTS FROM THE QUARTER
- Site rental revenues. Site rental revenues grew approximately 35%, or $296 million, from first quarter 2017 to first quarter 2018, inclusive of approximately $47 million in Organic Contribution to Site Rental Revenues plus $234 million in contributions from acquisitions and other items, plus a $15 million increase in straight-lined revenues. The $47 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 first quarter 2018 benefited by approximately $12 million from a long-term agreement signed with AT&T (“AT&T Agreement”) that includes contracted new leasing activity across towers and small cells.
- Net income. Net income for first quarter 2018 was $114 million and was impacted by approximately $71 million of losses on the retirement of long-term obligations.
- Adjusted EBITDA. When compared to the prior first quarter 2018 Outlook, Adjusted EBITDA benefited by approximately $12 million from the AT&T Agreement.
- AFFO. When compared to the prior first quarter 2018 Outlook, AFFO for first quarter 2018 benefited from approximately $11 million of lower sustaining capital expenditures due to timing as those expenditures are expected to occur later in 2018.
- Capital expenditures and acquisitions. Capital expenditures during the quarter were approximately $370 million, comprised of approximately $14 million of land purchases, approximately $22 million of sustaining capital expenditures, approximately $328 million of revenue generating capital expenditures and approximately $6 million of integration capital expenditures.
- Common stock dividend. During the quarter, Crown Castle paid common stock dividends of $1.05 per common share, an increase of approximately 11% compared to the same period a year ago.
- Financing activities. Crown Castle issued $1.75 billion in aggregate principal amount of senior unsecured notes in January and sold 7.765 million shares of its common stock in March (“March Equity Offering”), resulting in additional gross proceeds of approximately $850 million. Net proceeds from both transactions were used for general corporate purposes, including the repayment of existing indebtedness.
- Overall Results. Adjusted for the benefit associated with the AT&T Agreement and the timing of the sustaining capital expenditures, first quarter 2018 results exceeded the midpoint of the prior first quarter 2018 Outlook for site rental revenues, Adjusted EBITDA and AFFO.
“We believe we remain on track to deliver another year of solid growth in 2018 following another quarter of great execution by our team,” stated Dan Schlanger, Crown Castle’s Chief Financial Officer. “We are excited about the opportunity we see to generate compelling total returns for our shareholders in the near to medium term through a combination of dividends and growth, while at the same time making significant investments in our business that we believe will generate attractive returns longer term and support future growth in dividends per share.”
April 19, 2018
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