HOUSTON, Feb. 26, 2020 (GLOBE NEWSWIRE) -- Crown Castle
International Corp. (NYSE: CCI) ("Crown Castle") today reported
results for the fourth quarter and full year ended
December 31, 2019, updated its full year 2020 Outlook, and
announced the restatement of previously-issued financial
statements.
(in millions, except per share amounts) |
Midpoint of
Current Full
Year
2020
Outlook(c) |
Full Year 2019
Actual(d) |
Full Year 2018
Actual,
as restated(d) |
Full Year 2019
to Full Year
2020 Outlook
% Change |
Full Year 2018
to Full Year
2019 %
Change(d) |
Site rental revenues |
$5,360 |
$5,098 |
$4,800 |
+5% |
+6% |
Net income (loss) |
$1,038 |
$863 |
$625 |
+20% |
+38% |
Net income (loss) per
share—diluted(a) |
$2.32 |
$1.80 |
$1.23 |
+29% |
+46% |
Adjusted EBITDA(b) |
$3,502 |
$3,304 |
$3,095 |
+6% |
+7% |
AFFO(a)(b) |
$2,595 |
$2,376 |
$2,228 |
+9% |
+7% |
AFFO per
share(a)(b) |
$6.12 |
$5.69 |
$5.37 |
+8% |
+6% |
(a) Attributable to CCIC common stockholders.
(b) See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" included herein for further information
and reconciliation of this non-GAAP financial measure to net income
(loss).
(c) Represents no change from the midpoint of full year 2020
Outlook issued on October 16, 2019 ("Previous 2020 Outlook") other
than the impact of the restatement described in "Expected
Impact of the Restatement of Previously-Issued Financial
Statements."
(d) Results are preliminary and unaudited. See
"Expected Impact of the Restatement of Previously-Issued
Financial Statements" included herein for more information
regarding the Company's restatement.
"In 2019, we experienced our highest level of
tower leasing activity in more than a decade as the continued
growth in mobile data demand is driving our customers to make
significant investments in their existing 4G networks, while they
are also positioning their businesses for 5G," stated Jay Brown,
Crown Castle’s Chief Executive Officer. "We believe our
ability to offer towers, small cells and fiber solutions, which are
all integral components of communications networks and are shared
among multiple tenants, provides us the best opportunity to
generate significant growth while delivering high returns for our
shareholders. We believe that the U.S. represents the best
market in the world for communications infrastructure ownership,
and we are pursuing that compelling opportunity with our
comprehensive offering.
"Further, we delivered another strong year of
results for full year 2019 despite a noticeable slowdown in
activity in the fourth quarter of 2019. We anticipate that
this slowdown is temporary in nature and see a return to
significant activity in the second half of this year. We
believe the industry fundamentals are improving further with the
competitive landscape for our existing customers coming into focus,
the prospect of new customers looking for access to our tower and
fiber infrastructure at scale, and additional wireless spectrum
auctions on the horizon. As we look forward to what will
likely be another decade-long investment cycle for our customers
with the deployment of 5G, I am excited about the opportunity we
see for Crown Castle to deliver long-term value to our shareholders
while delivering dividend per share growth of 7% to 8% per
year."
DISCUSSION OF TOWER INSTALLATION
SERVICES REVENUES
In connection with our year-end procedures and after receiving the
previously disclosed subpoena from the U.S. Securities and Exchange
Commission ("SEC"), we engaged in a review internally, and in
consultation with our independent auditors, PricewaterhouseCoopers
LLP ("PwC"), of our accounting policies for our tower installation
services. Following that review, we decided with PwC to seek
input from the SEC's Office of the Chief Accountant ("OCA")
regarding whether a portion of our services revenues should be
recognized over the term of the associated lease. The OCA is
an office of the SEC that provides guidance to registrants and
auditors regarding the application of accounting standards and
financial disclosure requirements. The OCA provided advice on
the specific revenue recognition question we submitted to them for
their review and did not review or address any other aspect of our
accounting policies. Our consultation with the OCA was not
part of the previously disclosed SEC investigation, which is still
ongoing, or the related subpoena, which primarily related to
certain of our long-standing capitalization and expense policies
for tenant upgrades and installations in our services
business.
Our long-standing historical practice with
respect to services revenues had been to recognize the entirety of
the transaction price from our tower installation services as
services revenues upon the completion of the installation
services. After consultation with the OCA, we concluded that
our historical practice was not acceptable under GAAP.
Instead, a portion of the transaction price for our installation
services, specifically the amounts associated with permanent
improvements recorded as fixed assets, represents a modification to
the leases to which the services work is related and, therefore,
should be recognized on a ratable basis as site rental revenues
over the associated estimated remaining lease term.
Cumulatively, over the term of customer lease contracts, we will
recognize the same amount of total revenue and total gross margin
as our historical practice.
The result of recognizing a portion of the
transaction price on a ratable basis will be an increase to site
rental revenues and site rental gross margins that offsets, over
time, the decreases to services revenues and services gross
margins, in both historical and future periods. As a result,
the preliminary impact to each of Net Income, Adjusted EBITDA and
AFFO is a decrease of approximately $100 million for full year 2019
actuals and a decrease of approximately $90 million to our Previous
2020 Outlook. We have provided tables in this release to
reconcile the changes. Recognizing a portion of the
transaction price on a ratable basis for tower installation
services will have no impact on our net cash flows, business
operations or expected dividend per share growth.
Due to the identified errors described above, we
will restate our financial statements for the years ended December
31, 2018 and 2017, and unaudited financial information for the
quarterly and year-to-date periods in the year ended December 31,
2018 and for the first three quarters in the year ended December
31, 2019. Restated financial statements and financial
information for the periods in question will be reflected in Crown
Castle's Annual Report on Form 10-K for the year ended December 31,
2019 ("2019 10-K"), which Crown Castle expects to file within the
prescribed timeline for such report, including any available
extension if needed to finalize the consolidated financial
statements and disclosures and complete the associated audit
work.
Additional information relating to the
restatement is provided in the section of this release titled,
"Expected Impact of the Restatement of
Previously-Issued Financial Statements."
RESULTS FOR THE YEAR
The table below sets forth select preliminary unaudited financial
results for the year ended December 31, 2019 that reflect the
restatement described above.
(in millions, except per share amounts) |
Full Year
2019
Actual(c)(d) |
Midpoint of
Previous
2019 Outlook(e) |
Actual
Compared to
Previous
Outlook |
Effect of
Restatement(c) |
Site rental revenues |
$5,098 |
$4,965 |
+$133 |
+$110 |
Net income (loss) |
$863 |
$926 |
-$63 |
-$100 |
Net income (loss) per share—diluted(a) |
$1.80 |
$1.95 |
-$0.15 |
-$0.24 |
Adjusted EBITDA(b) |
$3,304 |
$3,408 |
-$104 |
-$100 |
AFFO(a)(b) |
$2,376 |
$2,479 |
-$103 |
-$100 |
AFFO per share(a)(b) |
$5.69 |
$5.94 |
-$0.25 |
-$0.24 |
(a) Attributable to CCIC common stockholders.
(b) See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" included herein for further information
and reconciliation of this non-GAAP financial measure to net income
(loss).
(c) Results are preliminary and unaudited. See
"Expected Impact of the Restatement of Previously-Issued
Financial Statements" included herein for more information
regarding the Company's restatement.
(d) Includes restatement of nine months ended September 30,
2019.
(e) As issued on October 16, 2019.
HIGHLIGHTS FROM THE YEAR
- Site rental revenues. Site rental
revenues grew approximately 6.2%, or $298 million, from full year
2018 to full year 2019, inclusive of approximately $290 million in
Organic Contribution to Site Rental Revenues and a $9 million
increase in straight-lined revenues. The $290 million in
Organic Contribution to Site Rental Revenues represents
approximately 6.1% growth, comprised of approximately 9.9% growth
from new leasing activity and contracted tenant escalations, net of
approximately 3.8% from tenant non-renewals.
- Capital Expenditures. Capital
expenditures during the year were $2.1 billion, comprised of $53
million of land purchases, $117 million of sustaining capital
expenditures, $1.9 billion of discretionary capital expenditures
and $9 million of integration capital expenditures. The
discretionary capital expenditures included approximately $1.4
billion attributable to Fiber and approximately $454 million
attributable to Towers.
- Common stock dividend. During 2019,
Crown Castle paid common stock dividends of approximately $1.9
billion in the aggregate, or $4.575 per common share, an increase
of approximately 7% on a per share basis compared to the same
period a year ago.
"Our solid 2019 results and 2020 Outlook, which
remains unchanged with the exception of the impact of the
restatement we disclosed today, reflect the strong underlying
demand for our communications infrastructure assets and our ability
to translate growth in data demand into growth in dividends per
share," stated Dan Schlanger, Crown Castle's Chief Financial
Officer. "Uncertainty around the outcome of the pending
merger between T-Mobile and Sprint led to lower activity levels in
the fourth quarter of 2019 that we believe will continue through
the first quarter of 2020. However, we expect activity
levels across the industry to increase throughout the year and
potentially beyond as we believe our customers will accelerate
their investments in 5G. As a result, we expect our financial
performance in 2020 will be more back-end loaded than we previously
expected, particularly for services contribution. Against
that backdrop, we are excited about the growth trends across our
business and the long-term opportunity in front of Crown Castle as
we continue to target 7% to 8% annual growth in dividends per
share."
OUTLOOK
This 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 SEC. As
indicated in the footnotes to the table below, the only changes to
our Previous 2020 Outlook are a result of the impact of the
restatement as described in "Expected Impact of the Restatement
of Previously-Issued Financial Statements."
The following table sets forth Crown Castle's current Outlook for
full year 2020:
(in millions) |
Full Year 2020 |
Site rental revenues |
$5,337 to $5,382 |
Site rental cost of operations(a) |
$1,482 to $1,527 |
Net income (loss) |
$998 to $1,078 |
Adjusted EBITDA(b) |
$3,479 to $3,524 |
Interest expense and
amortization of deferred financing costs(c) |
$691 to $736 |
FFO(b)(d) |
$2,449 to $2,494 |
AFFO(b)(d) |
$2,572 to $2,617 |
Weighted-average common shares
outstanding - diluted |
424 |
(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 current outlook for
interest expense and amortization of deferred financing costs"
herein for a discussion of non-cash interest expense.
(d) Attributable to CCIC common stockholders.
Full Year 2020 Outlook
The table below compares midpoint of the current full year 2020
Outlook and the midpoint of our Previous 2020 Outlook for select
metrics.
(in millions, except per share amounts) |
Midpoint of
Current Full
Year
2020 Outlook |
Midpoint of
Previous
Full Year
2020 Outlook |
Current
Compared to
Previous
Outlook |
Effect of
Restatement(c) |
Site rental revenues |
$5,360 |
$5,219 |
+$141 |
+$141 |
Net income (loss) |
$1,038 |
$1,128 |
-$90 |
-$90 |
Net income (loss) per
share—diluted(a) |
$2.32 |
$2.53 |
-$0.21 |
-$0.21 |
Adjusted EBITDA(b) |
$3,502 |
$3,592 |
-$90 |
-$90 |
AFFO(a)(b) |
$2,595 |
$2,685 |
-$90 |
-$90 |
AFFO per
share(a)(b) |
$6.12 |
$6.33 |
-$0.21 |
-$0.21 |
(a) Attributable to CCIC common stockholders.
(b) See reconciliation of this non-GAAP financial measure to
net income (loss) and definition included herein.
(c) See "Expected Impact of the Restatement of
Previously-Issued Financial Statements" included herein for
more information regarding the Company's restatement.
- The full year 2020 Outlook assumes the proposed merger between
T-Mobile and Sprint closes at the end of the first quarter
2020.
- The 2020 Outlook also reflects the impact of the assumed
conversion of preferred stock in August 2020. This conversion
is expected to increase the diluted weighted average common shares
outstanding for 2020 by approximately 6 million and reduce the
annual preferred stock dividends paid by approximately $28 million
when compared to 2019.
- The chart below reconciles the components of expected growth in
site rental revenues from 2019 to 2020 of $250 million to $295
million, inclusive of expected Organic Contribution to Site Rental
Revenues during 2020 of $295 million to $335 million.
Chart 1: https://www.globenewswire.com/NewsRoom/AttachmentNg/41d94009-0f48-47d0-9fcf-ad26bbdb2697
- New leasing activity is expected to contribute $395 million to
$425 million to 2020 Organic Contribution to Site Rental Revenues,
consisting of new leasing activity from towers of $170 million to
$180 million, small cells of $65 million to $75 million, and fiber
solutions of $160 million to $170 million.
- The chart below reconciles the components of expected growth in
AFFO from 2019 to 2020 of $195 million to $240 million.
Chart 2: https://www.globenewswire.com/NewsRoom/AttachmentNg/3cd193da-e22b-40b6-b1f1-929b7b54aa2a
- Additional information is available in Crown Castle's quarterly
Supplemental Information Package posted in the Investors section of
our website.
EXPECTED IMPACT OF THE RESTATEMENT OF
PREVIOUSLY-ISSUED FINANCIAL STATEMENTS
As indicated above, we will restate our financial statements for
the years ended December 31, 2018 and 2017, and unaudited financial
information for the quarterly and year-to-date periods in the year
ended December 31, 2018 and for the first three quarters in the
year ended December 31, 2019. The expected impact of the
restatement described above and in the tables in this release is
preliminary and unaudited and is subject to change before we file
the 2019 10-K. We believe the restatement will not have an
impact on our business operations or our net cash flows.
The tables set forth below summarize (1) the
estimated effects of the restatement on historical periods and (2)
the estimated effects of other adjustments to previously-issued
financial statements for years prior to 2019 to correct errors
relating exclusively to our Towers segment that were not material,
either individually or in the aggregate, on certain of the
Company's select financial results for the quarters and years
ending December 31, 2019 and 2018, and the years ended December 31,
2017, 2016, and 2015.
(in millions, except per share amounts) |
Q1 2019(c) |
Q2 2019(c) |
Q3 2019(c) |
Q4 2019(c) |
Full Year
2019(c) |
Site rental revenues |
$24 |
$26 |
$29 |
$31 |
$110 |
Services and other revenues |
$(41) |
$(55) |
$(57) |
$(57) |
$(210) |
Net income (loss) |
$(17) |
$(29) |
$(28) |
$(26) |
$(100) |
Net income (loss) per share—diluted(a) |
$(0.04) |
$(0.07) |
$(0.07) |
$(0.06) |
$(0.24) |
Adjusted EBITDA(b) |
$(17) |
$(29) |
$(28) |
$(26) |
$(100) |
AFFO(a)(b) |
$(17) |
$(29) |
$(28) |
$(26) |
$(100) |
AFFO per share(a)(b) |
$(0.04) |
$(0.07) |
$(0.07) |
$(0.06) |
$(0.24) |
(in millions, except per share amounts) |
Q1 2018(c) |
Q2 2018(c) |
Q3 2018(c) |
Q4 2018(c) |
Full Year
2018(c) |
Site rental revenues |
$19 |
$20 |
$22 |
$23 |
$84 |
Services and other revenues |
$(33) |
$(30) |
$(34) |
$(36) |
$(133) |
Net income (loss) |
$(13) |
$(9) |
$(11) |
$(13) |
$(46) |
Net income (loss) per share—diluted(a) |
$(0.03) |
$(0.02) |
$(0.03) |
$(0.03) |
$(0.11) |
Adjusted EBITDA(b) |
$(13) |
$(9) |
$(11) |
$(13) |
$(46) |
AFFO(a)(b) |
$(13) |
$(9) |
$(11) |
$(13) |
$(46) |
AFFO per share(a)(b) |
$(0.03) |
$(0.02) |
$(0.03) |
$(0.03) |
$(0.11) |
(in millions, except per share amounts) |
Full Year
2017(c) |
Full Year
2016(c) |
Full Year
2015(c) |
Site rental revenues |
$68 |
$53 |
$40 |
Services and other revenues |
$(166) |
$(122) |
$(111) |
Net income (loss) |
$(77) |
$(49) |
$(68) |
Net income (loss) per share—diluted(a) |
$(0.20) |
$(0.14) |
$(0.20) |
Adjusted EBITDA(b) |
$(77) |
$(49) |
$(68) |
AFFO(a)(b) |
$(77) |
$(49) |
$(68) |
AFFO per share(a)(b) |
$(0.20) |
$(0.14) |
$(0.20) |
(a) Attributable to CCIC common stockholders.
(b) See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" included herein for further information
and reconciliation of this non-GAAP financial measure to net income
(loss).
(c) Results are preliminary and unaudited. See
"Expected Impact of the Restatement of Previously-Issued
Financial Statements" included herein for more information
regarding the Company's restatement.
Crown Castle has determined that the restatement
of its previously issued financial statements as described above
indicates the existence of one or more material weaknesses in its
internal control over financial reporting and that its internal
control over financial reporting and disclosure controls and
procedures were ineffective as of December 31, 2019. Crown
Castle will report the material weakness(es) in its 2019 10-K and
intends to create a plan of remediation to address the material
weakness(es).
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Thursday, February
27, 2020, at 10:30 a.m. Eastern time to discuss its fourth quarter
2019 results. The conference call may be accessed by dialing
800-367-2403 and asking for the Crown Castle call (access code
8599522) at least 30 minutes prior to the start time. The
conference call may also be accessed live over the Internet at
investor.crowncastle.com. Supplemental materials for the call have
been posted on the Crown Castle website at
investor.crowncastle.com.
A telephonic replay of the conference call will
be available from 1:30 p.m. Eastern time on Thursday, February 27,
2020, through 1:30 p.m. Eastern time on Wednesday, May 27, 2020,
and may be accessed by dialing 888-203-1112 and using access code
8599522. An audio archive will also be available on Crown
Castle's website at investor.crowncastle.com shortly after the call
and will be accessible for approximately 90 days.
ABOUT CROWN CASTLE
Crown Castle owns, operates and leases more than 40,000 cell towers
and approximately 80,000 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"), including
per share amounts, Funds from Operations ("FFO"), including per
share amounts, 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 non-GAAP financial measures 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 Services and Other Gross Margin and Segment Operating
Profit, which are key measures used by management to evaluate our
operating segments. 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.
Our non-GAAP financial measures 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, including per share amounts, 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, including per share amounts, 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 tenant 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 sustaining capital
expenditures.
AFFO per share. We define AFFO per
share as AFFO divided by diluted weighted-average common shares
outstanding.
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.
FFO per share. We define FFO per share
as FFO divided by the diluted weighted-average common shares
outstanding.
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 tenant 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 Services and Other Gross
Margin. We define Segment Services and Other Gross
Margin as segment services and other revenues less segment services
and other cost of operations, excluding stock-based compensation
expense recorded in consolidated services and other cost of
operations.
Segment Operating Profit. We
define Segment Operating Profit as segment site rental gross margin
plus segment services and other gross margin, less selling, general
and administrative expenses attributable to the respective
segment.
All of these measurements of profit or loss are
exclusive of depreciation, amortization and accretion, which are
shown separately. Additionally, certain costs are shared
across segments and are reflected in our segment measures through
allocations that management believes to be reasonable.
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 primarily consist of expansion or development of
communications infrastructure (including capital expenditures
related to (1) enhancing communications infrastructure in order to
add new tenants for the first time or support subsequent tenant
equipment augmentations: or (2) modifying the structure of a
communications infrastructure asset to accommodate additional
tenants). and construction of new communications infrastructure.
Discretionary capital expenditures also include purchases of land
interests (which primarily relates to land assets under towers as
we seek to manage our interests in the land beneath our towers).
certain technology-related investments necessary to support and
scale future customer demand for our communications infrastructure.
and other capital projects.
Integration capital expenditures.
We define integration capital expenditures as those capital
expenditures made as a result of integrating acquired companies
into our business.
Sustaining capital expenditures.
We define sustaining capital expenditures as those capital
expenditures not otherwise categorized as either discretionary or
integration capital expenditures, such as (1) maintenance capital
expenditures on our communications infrastructure assets that
enable our tenants' ongoing quiet enjoyment of the communications
infrastructure and (2) ordinary corporate capital expenditures.
The tables set forth on the following pages
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.
The expected impacts of the restatement
described above and in the tables below are preliminary and
unaudited and are subject to change before we file the 2019
10-K. The tables set forth below reflect (1) the estimated
effects of the restatement and (2) the estimated effects of other
adjustments to previously-issued financial statements for years
prior to 2019 to correct errors related exclusively to our Towers
segment that were not material, individually or in the aggregate,
on certain of the Company's select financial results for the
quarters and years ending December 31, 2019 and 2018, and the years
ended December 31, 2017, 2016, and 2015.
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, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
(in millions) |
|
|
(As Restated) |
|
|
|
(As Restated) |
Net income (loss) |
$ |
208 |
|
|
$ |
200 |
|
|
$ |
863 |
|
|
$ |
625 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset write-down charges |
6 |
|
|
8 |
|
|
19 |
|
|
26 |
|
Acquisition and integration costs |
3 |
|
|
9 |
|
|
13 |
|
|
27 |
|
Depreciation, amortization and accretion |
398 |
|
|
390 |
|
|
1,574 |
|
|
1,528 |
|
Amortization of prepaid lease purchase price adjustments |
5 |
|
|
5 |
|
|
20 |
|
|
20 |
|
Interest expense and amortization of deferred financing
costs(a) |
173 |
|
|
164 |
|
|
683 |
|
|
642 |
|
(Gains) losses on retirement of long-term obligations |
— |
|
|
— |
|
|
2 |
|
|
106 |
|
Interest income |
(1 |
) |
|
(2 |
) |
|
(6 |
) |
|
(5 |
) |
Other (income) expense |
(7 |
) |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
(Benefit) provision for income taxes |
6 |
|
|
5 |
|
|
21 |
|
|
19 |
|
Stock-based compensation expense |
27 |
|
|
25 |
|
|
116 |
|
|
108 |
|
Adjusted EBITDA(b)(c) |
$ |
818 |
|
|
$ |
803 |
|
|
$ |
3,304 |
|
|
$ |
3,095 |
|
|
For the Twelve Months Ended |
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2015 |
(in millions) |
(As Restated) |
|
(As Restated) |
|
(As Restated) |
Net income (loss) |
$ |
368 |
|
|
$ |
308 |
|
|
$ |
1,456 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
Income (loss) from discontinued operations |
— |
|
|
— |
|
|
(999 |
) |
Asset write-down charges |
17 |
|
|
34 |
|
|
33 |
|
Acquisition and integration costs |
61 |
|
|
17 |
|
|
16 |
|
Depreciation, amortization and accretion |
1,242 |
|
|
1,109 |
|
|
1,036 |
|
Amortization of prepaid lease purchase price adjustments |
20 |
|
|
21 |
|
|
21 |
|
Interest expense and amortization of deferred financing
costs(a) |
591 |
|
|
515 |
|
|
527 |
|
(Gains) losses on retirement of long-term obligations |
4 |
|
|
52 |
|
|
4 |
|
Interest income |
(19 |
) |
|
(1 |
) |
|
(2 |
) |
Other (income) expense |
(1 |
) |
|
9 |
|
|
(57 |
) |
(Benefit) provision for income taxes |
26 |
|
|
17 |
|
|
(51 |
) |
Stock-based compensation expense |
96 |
|
|
97 |
|
|
67 |
|
Adjusted EBITDA(b)(c) |
$ |
2,405 |
|
|
$ |
2,179 |
|
|
$ |
2,051 |
|
- See the reconciliation of "components of historical interest
expense and amortization of deferred financing costs" herein for a
discussion of non-cash interest expense.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definition
of Adjusted EBITDA.
- 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:
|
Full Year 2020 |
(in millions) |
Outlook |
Net income (loss) |
$ |
998 |
|
to |
$ |
1,078 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
Asset write-down charges |
$ |
20 |
|
to |
$ |
30 |
|
Acquisition and integration costs |
$ |
7 |
|
to |
$ |
17 |
|
Depreciation, amortization and accretion |
$ |
1,503 |
|
to |
$ |
1,598 |
|
Amortization of prepaid lease purchase price adjustments |
$ |
18 |
|
to |
$ |
20 |
|
Interest expense and amortization of deferred financing
costs(a) |
$ |
691 |
|
to |
$ |
736 |
|
(Gains) losses on retirement of long-term obligations |
$ |
0 |
|
to |
$ |
0 |
|
Interest income |
$ |
(7 |
) |
to |
$ |
(3 |
) |
Other (income) expense |
$ |
(1 |
) |
to |
$ |
1 |
|
(Benefit) provision for income taxes |
$ |
16 |
|
to |
$ |
24 |
|
Stock-based compensation expense |
$ |
126 |
|
to |
$ |
130 |
|
Adjusted EBITDA(b)(c) |
$ |
3,479 |
|
to |
$ |
3,524 |
|
- See the reconciliation of "components of historical interest
expense and amortization of deferred financing costs" herein for a
discussion of non-cash interest expense.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definition
of Adjusted EBITDA.
- 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, 2019 |
|
December 31, 2018 |
|
December 31, 2019 |
|
December 31, 2018 |
|
|
(As Restated) |
|
|
|
(As Restated) |
Net income (loss) |
$ |
208 |
|
|
$ |
200 |
|
|
$ |
863 |
|
|
$ |
625 |
|
Real estate related
depreciation, amortization and accretion |
384 |
|
|
375 |
|
|
1,519 |
|
|
1,472 |
|
Asset write-down charges |
6 |
|
|
8 |
|
|
19 |
|
|
26 |
|
Dividends/distributions on
preferred stock |
(28 |
) |
|
(28 |
) |
|
(113 |
) |
|
(113 |
) |
FFO(a)(b)(c)(d) |
$ |
570 |
|
|
$ |
555 |
|
|
$ |
2,288 |
|
|
$ |
2,009 |
|
Weighted-average common shares
outstanding—diluted(e) |
418 |
|
|
417 |
|
|
418 |
|
|
415 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
1.36 |
|
|
$ |
1.33 |
|
|
$ |
5.47 |
|
|
$ |
4.84 |
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
570 |
|
|
$ |
555 |
|
|
$ |
2,288 |
|
|
$ |
2,009 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
(18 |
) |
|
(20 |
) |
|
(80 |
) |
|
(72 |
) |
Straight-lined expense |
23 |
|
|
21 |
|
|
93 |
|
|
90 |
|
Stock-based compensation expense |
27 |
|
|
25 |
|
|
116 |
|
|
108 |
|
Non-cash portion of tax provision |
3 |
|
|
3 |
|
|
5 |
|
|
2 |
|
Non-real estate related depreciation, amortization and
accretion |
14 |
|
|
15 |
|
|
55 |
|
|
56 |
|
Amortization of non-cash interest expense |
— |
|
|
2 |
|
|
1 |
|
|
7 |
|
Other (income) expense |
(7 |
) |
|
(1 |
) |
|
(1 |
) |
|
(1 |
) |
(Gains) losses on retirement of long-term obligations |
— |
|
|
— |
|
|
2 |
|
|
106 |
|
Acquisition and integration costs |
3 |
|
|
9 |
|
|
13 |
|
|
27 |
|
Sustaining capital expenditures |
(36 |
) |
|
(30 |
) |
|
(117 |
) |
|
(105 |
) |
AFFO(a)(b)(c)(d) |
$ |
578 |
|
|
$ |
578 |
|
|
$ |
2,376 |
|
|
$ |
2,228 |
|
Weighted-average common shares
outstanding—diluted(e) |
418 |
|
|
417 |
|
|
418 |
|
|
415 |
|
AFFO per share(a)(b)(c)(d)(e) |
$ |
1.38 |
|
|
$ |
1.39 |
|
|
$ |
5.69 |
|
|
$ |
5.37 |
|
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions
of FFO, including per share amounts, and AFFO, including per share
amounts.
- FFO and AFFO are reduced by cash paid for preferred stock
dividends during the period in which they are paid.
- Attributable to CCIC common stockholders.
- The above reconciliation excludes line items included in our
definition which are not applicable for the periods shown.
- For all periods presented, the diluted weighted-average common
shares outstanding does not include any assumed conversion of
preferred stock in the share count.
Reconciliation of Historical FFO and
AFFO:
|
For the Twelve Months Ended |
(in
millions) |
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2015 |
(As Restated) |
Net income (loss)(a) |
$ |
368 |
|
|
$ |
308 |
|
|
$ |
457 |
|
Real estate related
depreciation, amortization and accretion |
1,211 |
|
|
1,082 |
|
|
1,018 |
|
Asset write-down charges |
17 |
|
|
34 |
|
|
33 |
|
Dividends/distributions on
preferred stock |
(30 |
) |
|
(44 |
) |
|
(44 |
) |
FFO(b)(c)(d)(e) |
$ |
1,566 |
|
|
$ |
1,381 |
|
|
$ |
1,465 |
|
Weighted-average common shares
outstanding—diluted(f) |
383 |
|
|
341 |
|
|
334 |
|
FFO per share(b)(c)(d)(e)(f) |
$ |
4.09 |
|
|
$ |
4.05 |
|
|
$ |
4.39 |
|
|
|
|
|
|
|
FFO (from above) |
$ |
1,566 |
|
|
$ |
1,381 |
|
|
$ |
1,465 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
Straight-lined revenue |
— |
|
|
(47 |
) |
|
(111 |
) |
Straight-lined expense |
93 |
|
|
94 |
|
|
99 |
|
Stock-based compensation expense |
96 |
|
|
97 |
|
|
67 |
|
Non-cash portion of tax provision |
9 |
|
|
7 |
|
|
(64 |
) |
Non-real estate related depreciation, amortization and
accretion |
31 |
|
|
26 |
|
|
18 |
|
Amortization of non-cash interest expense |
9 |
|
|
14 |
|
|
37 |
|
Other (income) expense |
(1 |
) |
|
9 |
|
|
(57 |
) |
(Gains) losses on retirement of long-term obligations |
4 |
|
|
52 |
|
|
4 |
|
Acquisition and integration costs |
61 |
|
|
17 |
|
|
16 |
|
Sustaining capital expenditures |
(85 |
) |
|
(90 |
) |
|
(105 |
) |
AFFO(b)(c)(d)(e) |
$ |
1,783 |
|
|
$ |
1,561 |
|
|
$ |
1,369 |
|
Weighted-average common shares
outstanding—diluted(f) |
383 |
|
|
341 |
|
|
334 |
|
AFFO per share(b)(c)(d)(e)(f) |
$ |
4.65 |
|
|
$ |
4.58 |
|
|
$ |
4.10 |
|
- Exclusive of income (loss) from discontinued operations and
related noncontrolling interest of $1.0 billion for the twelve
months ended December 31, 2015.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions
of FFO, including per share amounts, and AFFO, including per share
amounts.
- FFO and AFFO are reduced by cash paid for preferred stock
dividends during the period in which they are paid.
- Attributable to CCIC common stockholders.
- The above reconciliation excludes line items included in our
definition which are not applicable for the periods shown.
- For all periods presented, the diluted weighted-average common
shares outstanding does not include any assumed conversion of
preferred stock in the share count.
Reconciliation of Current Outlook for
FFO and AFFO:
|
Full Year 2020 |
(in millions) |
Outlook |
Net income (loss) |
$ |
998 |
|
to |
$ |
1,078 |
|
Real estate related
depreciation, amortization and accretion |
$ |
1,454 |
|
to |
$ |
1,534 |
|
Asset write-down charges |
$ |
20 |
|
to |
$ |
30 |
|
Dividends/distributions on
preferred stock |
$ |
(85 |
) |
to |
$ |
(85 |
) |
FFO(a)(b)(c)(d) |
$ |
2,449 |
|
to |
$ |
2,494 |
|
Weighted-average common shares
outstanding—diluted(e) |
|
424 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
5.77 |
|
to |
$ |
5.88 |
|
|
|
|
|
FFO (from above) |
$ |
2,449 |
|
to |
$ |
2,494 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
Straight-lined revenue |
$ |
(53 |
) |
to |
$ |
(33 |
) |
Straight-lined expense |
$ |
70 |
|
to |
$ |
90 |
|
Stock-based compensation expense |
$ |
126 |
|
to |
$ |
130 |
|
Non-cash portion of tax provision |
$ |
(6 |
) |
to |
$ |
9 |
|
Non-real estate related depreciation, amortization and
accretion |
$ |
49 |
|
to |
$ |
64 |
|
Amortization of non-cash interest expense |
$ |
(4 |
) |
to |
$ |
6 |
|
Other (income) expense |
$ |
(1 |
) |
to |
$ |
1 |
|
(Gains) losses on retirement of long-term obligations |
$ |
0 |
|
to |
$ |
0 |
|
Acquisition and integration costs |
$ |
7 |
|
to |
$ |
17 |
|
Sustaining capital expenditures |
$ |
(123 |
) |
to |
$ |
(103 |
) |
AFFO(a)(b)(c)(d) |
$ |
2,572 |
|
to |
$ |
2,617 |
|
Weighted-average common shares
outstanding—diluted(e) |
|
424 |
|
AFFO per share(a)(b)(c)(d)(e) |
$ |
6.06 |
|
to |
$ |
6.17 |
|
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions
of FFO, including per share amounts, and AFFO, including per share
amounts.
- FFO and AFFO are reduced by cash paid for preferred stock
dividends during the period in which they are paid.
- Attributable to CCIC common stockholders.
- The above reconciliation excludes line items included in our
definition which are not applicable for the periods shown.
- The assumption for diluted weighted-average common shares
outstanding for full year 2020 Outlook is based on the diluted
common shares outstanding as of December 31, 2019 and is inclusive
of the assumed conversion of preferred stock in August 2020, which
we expect to result in (1) an increase in the diluted
weighted-average common shares outstanding by approximately 6
million shares and (2) a reduction in the amount of annual
preferred stock dividends paid by approximately $28 million when
compared to full year 2019.
For Comparative Purposes - Reconciliation of Previous
Outlook for Adjusted EBITDA:
|
Previously Issued |
|
Previously Issued |
|
Full Year 2019 |
|
Full Year 2020 |
(in millions) |
Outlook |
|
Outlook |
Net income (loss) |
$ |
896 |
|
to |
$ |
956 |
|
|
$ |
1,088 |
|
to |
$ |
1,168 |
|
Adjustments to increase
(decrease) net income (loss): |
|
|
|
|
|
|
|
Asset write-down charges |
$ |
23 |
|
to |
$ |
33 |
|
|
$ |
20 |
|
to |
$ |
30 |
|
Acquisition and integration costs |
$ |
11 |
|
to |
$ |
21 |
|
|
$ |
7 |
|
to |
$ |
17 |
|
Depreciation, amortization and accretion |
$ |
1,576 |
|
to |
$ |
1,611 |
|
|
$ |
1,503 |
|
to |
$ |
1,598 |
|
Amortization of prepaid lease purchase price adjustments |
$ |
19 |
|
to |
$ |
21 |
|
|
$ |
18 |
|
to |
$ |
20 |
|
Interest expense and amortization of deferred financing costs |
$ |
674 |
|
to |
$ |
704 |
|
|
$ |
691 |
|
to |
$ |
736 |
|
(Gains) losses on retirement of long-term obligations |
$ |
2 |
|
to |
$ |
2 |
|
|
$ |
0 |
|
to |
$ |
0 |
|
Interest income |
$ |
(8 |
) |
to |
$ |
(4 |
) |
|
$ |
(7 |
) |
to |
$ |
(3 |
) |
Other (income) expense |
$ |
2 |
|
to |
$ |
4 |
|
|
$ |
(1 |
) |
to |
$ |
1 |
|
(Benefit) provision for income taxes |
$ |
16 |
|
to |
$ |
24 |
|
|
$ |
16 |
|
to |
$ |
24 |
|
Stock-based compensation expense |
$ |
112 |
|
to |
$ |
120 |
|
|
$ |
126 |
|
to |
$ |
130 |
|
Adjusted EBITDA(a)(b) |
$ |
3,393 |
|
to |
$ |
3,423 |
|
|
$ |
3,569 |
|
to |
$ |
3,614 |
|
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definition
of Adjusted EBITDA.
- 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 |
|
Full Year 2019 |
|
Full Year 2020 |
(in millions) |
Outlook |
|
Outlook |
Net income (loss) |
$ |
896 |
|
to |
$ |
956 |
|
|
$ |
1,088 |
|
to |
$ |
1,168 |
|
Real estate related
depreciation, amortization and accretion |
$ |
1,528 |
|
to |
$ |
1,548 |
|
|
$ |
1,454 |
|
to |
$ |
1,534 |
|
Asset write-down charges |
$ |
23 |
|
to |
$ |
33 |
|
|
$ |
20 |
|
to |
$ |
30 |
|
Dividends/distributions on
preferred stock |
$ |
(113 |
) |
to |
$ |
(113 |
) |
|
$ |
(85 |
) |
to |
$ |
(85 |
) |
FFO(a)(b)(c)(d) |
$ |
2,363 |
|
to |
$ |
2,393 |
|
|
$ |
2,539 |
|
to |
$ |
2,584 |
|
Weighted-average common shares
outstanding—diluted(e) |
|
418 |
|
|
|
424 |
|
FFO per share(a)(b)(c)(d)(e) |
$ |
5.66 |
|
to |
$ |
5.73 |
|
|
$ |
5.99 |
|
to |
$ |
6.09 |
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
2,363 |
|
to |
$ |
2,393 |
|
|
$ |
2,539 |
|
to |
$ |
2,584 |
|
Adjustments to increase
(decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
$ |
(74 |
) |
to |
$ |
(54 |
) |
|
$ |
(53 |
) |
to |
$ |
(33 |
) |
Straight-lined expense |
$ |
81 |
|
to |
$ |
101 |
|
|
$ |
70 |
|
to |
$ |
90 |
|
Stock-based compensation expense |
$ |
112 |
|
to |
$ |
120 |
|
|
$ |
126 |
|
to |
$ |
130 |
|
Non-cash portion of tax provision |
$ |
(6 |
) |
to |
$ |
9 |
|
|
$ |
(6 |
) |
to |
$ |
9 |
|
Non-real estate related depreciation, amortization and
accretion |
$ |
48 |
|
to |
$ |
63 |
|
|
$ |
49 |
|
to |
$ |
64 |
|
Amortization of non-cash interest expense |
$ |
(5 |
) |
to |
$ |
5 |
|
|
$ |
(4 |
) |
to |
$ |
6 |
|
Other (income) expense |
$ |
2 |
|
to |
$ |
4 |
|
|
$ |
(1 |
) |
to |
$ |
1 |
|
(Gains) losses on retirement of long-term obligations |
$ |
2 |
|
to |
$ |
2 |
|
|
$ |
0 |
|
to |
$ |
0 |
|
Acquisition and integration costs |
$ |
11 |
|
to |
$ |
21 |
|
|
$ |
7 |
|
to |
$ |
17 |
|
Sustaining capital expenditures |
$ |
(136 |
) |
to |
$ |
(106 |
) |
|
$ |
(123 |
) |
to |
$ |
(103 |
) |
AFFO(a)(b)(c)(d) |
$ |
2,464 |
|
to |
$ |
2,494 |
|
|
$ |
2,662 |
|
to |
$ |
2,707 |
|
Weighted-average common shares
outstanding—diluted(e) |
|
418 |
|
|
|
424 |
|
AFFO per share(a)(b)(c)(d)(e) |
$ |
5.90 |
|
to |
$ |
5.97 |
|
|
$ |
6.28 |
|
to |
$ |
6.38 |
|
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions
of FFO, including per share amounts, and AFFO, including per share
amounts.
- FFO and AFFO are reduced by cash paid for preferred stock
dividends during the period in which they are paid.
- Attributable to CCIC common stockholders.
- The above reconciliation excludes line items included in our
definition which are not applicable for the periods shown.
- The assumption for diluted weighted-average common shares
outstanding for full year 2020 Outlook is based on the diluted
common shares outstanding as of December 31, 2019 and is inclusive
of the assumed conversion of preferred stock in August 2020, which
we expect to result in (1) an increase in the diluted
weighted-average common shares outstanding by approximately 6
million shares and (2) a reduction in the amount of annual
preferred stock dividends paid by approximately $28 million when
compared to full year 2019.
The components of changes in site rental revenues for
the quarters ended December 31, 2019 and 2018 are as
follows:
|
Three Months Ended December 31, |
(dollars in millions) |
2019 |
|
2018 |
|
|
(As Restated) |
Components of changes in site
rental revenues(a): |
|
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$1,212 |
|
$1,067 |
|
|
|
|
New leasing activity(b)(c) |
100 |
|
64 |
Escalators |
22 |
|
21 |
Non-renewals |
(51) |
|
(22) |
Organic Contribution to Site Rental Revenues(d) |
71 |
|
63 |
Straight-lined revenues associated with fixed escalators |
18 |
|
20 |
Acquisitions(e) |
— |
|
82 |
Other |
— |
|
— |
Total GAAP site rental
revenues |
$1,301 |
|
$1,232 |
|
|
|
|
Year-over-year changes
in revenue: |
|
|
|
Reported GAAP site rental
revenues |
5.6% |
|
|
Organic Contribution to Site
Rental Revenues(d)(f) |
5.9% |
|
|
- Additional information regarding Crown Castle's site rental
revenues, including projected revenue from tenant licenses,
straight-lined revenues and prepaid rent is available in Crown
Castle's quarterly Supplemental Information Package posted in the
Investors section of its website.
- Includes revenues from amortization of prepaid rent in
accordance with GAAP.
- Includes revenues from the construction of new small cell
nodes, exclusive of straight-lined revenues related to fixed
escalators.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein.
- Represents the contribution from recent acquisitions. The
financial impact of recent acquisitions is excluded from Organic
Contribution to Site Rental Revenues until the one-year anniversary
of the acquisition.
- 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 years ending December 31, 2019 and December 31, 2020
are forecasted as follows:
(dollars in millions) |
Full Year 2019 |
|
Full Year 2020 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) |
$4,727 |
|
$5,017 |
|
|
|
|
New leasing activity(b)(c) |
385 |
|
395-425 |
Escalators |
86 |
|
90-100 |
Non-renewals |
(181) |
|
(195)-(175) |
Organic Contribution to Site Rental Revenues(d) |
290 |
|
295-335 |
Straight-lined revenues associated with fixed escalators |
81 |
|
33-53 |
Acquisitions(e) |
— |
|
— |
Other |
— |
|
— |
Total GAAP site rental
revenues |
$5,098 |
|
$5,337-$5,382 |
|
|
|
|
Year-over-year changes
in revenue: |
|
|
|
Reported GAAP site rental
revenues(f) |
6.2% |
|
5.1% |
Organic Contribution to Site
Rental Revenues(d)(f)(g) |
6.1% |
|
6.3% |
- Additional information regarding Crown Castle's site rental
revenues, including projected revenue from tenant licenses,
straight-lined revenues and prepaid rent is available in Crown
Castle's quarterly Supplemental Information Package posted in the
Investors section of its website.
- Includes revenues from amortization of prepaid rent in
accordance with GAAP.
- Includes revenues from the construction of new small cell
nodes, exclusive of straight-lined revenues related to fixed
escalators.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein.
- Represents the contribution from recent acquisitions. The
financial impact of recent acquisitions is excluded from Organic
Contribution to Site Rental Revenues until the one-year anniversary
of the acquisition.
- Calculated based on midpoint of full year 2020 Outlook.
- 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, 2019 |
|
December 31, 2018 |
Interest expense on debt obligations |
$ |
173 |
|
|
$ |
162 |
|
Amortization of deferred
financing costs and adjustments on long-term debt, net |
5 |
|
|
5 |
|
Other, net |
(5 |
) |
|
(3 |
) |
Interest expense and
amortization of deferred financing costs |
$ |
173 |
|
|
$ |
164 |
|
Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing
Costs:
|
Full Year 2020 |
(in millions) |
Outlook |
Interest expense on debt obligations |
$ |
703 |
|
to |
$ |
723 |
|
Amortization of deferred
financing costs and adjustments on long-term debt, net |
$ |
20 |
|
to |
$ |
25 |
|
Other, net |
$ |
(24 |
) |
to |
$ |
(19 |
) |
Interest expense and
amortization of deferred financing costs |
$ |
691 |
|
to |
$ |
736 |
|
Debt balances and maturity dates as
of December 31, 2019 are as follows:
(in millions) |
Face Value |
|
Final Maturity |
Cash, cash equivalents and restricted cash |
$ |
338 |
|
|
|
|
|
|
3.849% Secured Notes |
1,000 |
|
Apr. 2023 |
Secured Notes, Series 2009-1, Class A-2(a) |
68 |
|
Aug. 2029 |
Tower Revenue Notes, Series
2015-1(b) |
300 |
|
May 2042 |
Tower Revenue Notes, Series
2018-1(b) |
250 |
|
July 2043 |
Tower Revenue Notes, Series
2015-2(b) |
700 |
|
May 2045 |
Tower Revenue Notes, Series
2018-2(b) |
750 |
|
July 2048 |
Finance leases and other
obligations |
226 |
|
Various |
Total secured
debt |
$ |
3,294 |
|
|
2016 Revolver |
525 |
|
June 2024 |
2016 Term Loan A |
2,312 |
|
June 2024 |
Commercial Paper
Notes(c) |
155 |
|
Various |
3.400% Senior Notes |
850 |
|
Feb. 2021 |
2.250% Senior Notes |
700 |
|
Sept. 2021 |
4.875% Senior Notes |
850 |
|
Apr. 2022 |
5.250% Senior Notes |
1,650 |
|
Jan. 2023 |
3.150% Senior Notes |
750 |
|
July 2023 |
3.200% Senior Notes |
750 |
|
Sept. 2024 |
4.450% Senior Notes |
900 |
|
Feb. 2026 |
3.700% Senior Notes |
750 |
|
June 2026 |
4.000% Senior Notes |
500 |
|
Mar. 2027 |
3.650% Senior Notes |
1,000 |
|
Sept. 2027 |
3.800% Senior Notes |
1,000 |
|
Feb. 2028 |
4.300% Senior Notes |
600 |
|
Feb. 2029 |
3.100% Senior Notes |
550 |
|
Nov. 2029 |
4.750% Senior Notes |
350 |
|
May 2047 |
5.200% Senior Notes |
400 |
|
Feb. 2049 |
4.000% Senior Notes |
350 |
|
Nov. 2049 |
Total unsecured
debt |
$ |
14,942 |
|
|
Total net
debt |
$ |
17,898 |
|
|
- The Senior Secured Notes, 2009-1, Class A-2 principal amortizes
during the period beginning in September 2019 and ending in August
2029.
- The Senior Secured Tower Revenue Notes, Series 2015-1 and
2015-2 have anticipated repayment dates in 2022 and 2025,
respectively. The Senior Secured Tower Revenue Notes, Series
2018-1 and 2018-2 have anticipated repayment dates in 2023 and
2028, respectively.
- The maturities of the Commercial Paper Notes, when outstanding,
may vary but may not exceed 397 days from the date of issue.
Net Debt to Last Quarter Annualized Adjusted EBITDA
is computed as follows:
(dollars in
millions) |
For the Three Months Ended December 31, 2019 |
Total face value of debt |
$ |
18,236 |
|
Ending cash, cash equivalents
and restricted cash |
338 |
|
Total Net Debt |
$ |
17,898 |
|
|
|
Adjusted EBITDA for the three
months ended December 31, 2019 |
$ |
818 |
|
Last quarter annualized
Adjusted EBITDA |
3,272 |
|
Net Debt to Last
Quarter Annualized Adjusted EBITDA |
5.5 |
x |
Components of Capital
Expenditures:
|
For the Three Months Ended |
(in millions) |
December 31, 2019 |
|
December 31, 2018 |
|
Towers |
Fiber |
Other |
Total |
|
Towers |
Fiber |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases of land interests |
$ |
11 |
|
$ |
— |
|
$ |
— |
|
$ |
11 |
|
|
$ |
18 |
|
$ |
— |
|
$ |
— |
|
$ |
18 |
|
Communications infrastructure construction and improvements |
119 |
|
353 |
|
— |
|
472 |
|
|
98 |
|
349 |
|
— |
|
447 |
|
Sustaining |
12 |
|
12 |
|
12 |
|
36 |
|
|
8 |
|
15 |
|
7 |
|
30 |
|
Integration |
— |
|
— |
|
2 |
|
2 |
|
|
— |
|
— |
|
5 |
|
5 |
|
Total |
$ |
142 |
|
$ |
365 |
|
$ |
14 |
|
$ |
521 |
|
|
$ |
124 |
|
$ |
364 |
|
$ |
11 |
|
$ |
500 |
|
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,
growth, returns, opportunities and tenant and shareholder value
which may be derived from our business, assets, investments,
acquisitions and dividends, (2) our strategy, business model and
capabilities and the strength of our business, (3) industry
fundamentals and driving factors for improvements in such
fundamentals, (4) our customers' investment, including investment
cycles, in network improvements and the trends driving such
improvements, (5) our long-term prospects and the trends impacting
our business (including growth in mobile data demand), (6)
preliminary restatement of financial results, our restatement plans
and the expected impact of such restatement, (7) management's
intent to report in the 2019 10-K and create a remediation plan to
address the material weakness(es) in Crown Castle's internal
controls over financial reporting and its ineffective disclosure
controls and procedures, (8) leasing environment and activity,
including (a) timing and temporary nature of the leasing activity
slowdown and our expectation for rebound in leasing activity and
(b) growth in leasing activity and the contribution to our
financial or operating results therefrom, (9) opportunities we see
to deliver long-term value and dividend per share growth, (10) the
status of the SEC investigation, (11) our dividends and our
dividend (including on a per share basis) growth rate, including
its driving factors, and targets, (12) our portfolio of
assets, including demand therefor, strategic position thereof and
opportunities created thereby, (13) assumed conversion of preferred
stock and the impact therefrom, (14) expected timing for the
closing of the proposed merger between T-Mobile and Sprint, (15)
amount of total revenue and total gross margin we expect to
recognize cumulatively over the associated estimated remaining
lease term, (16) timing of filing of the 2019 10-K, (17) cash
flows, including growth thereof, (18) tenant non-renewals,
including the impact and timing thereof, (19) capital expenditures,
including sustaining and discretionary capital expenditures, and
the timing thereof, (20) straight-line adjustments, (21) site
rental revenues and estimated growth thereof, (22) site rental
cost of operations, (23) net income (loss) (including on a per
share basis) and estimated growth thereof, (24) Adjusted
EBITDA, including the impact of the timing of certain components
thereof and estimated growth thereof, (25) expenses, including
interest expense and amortization of deferred financing costs, (26)
FFO (including on a per share basis) and estimated growth thereof,
(27) AFFO (including on a per share basis) and estimated growth
thereof and corresponding driving factors, (28) Organic
Contribution to Site Rental Revenues and its components, including
contributions therefrom, (29) our weighted-average common shares
outstanding (including on a diluted basis) and estimated growth
thereof, (30) services contribution, including the timing
thereof, (31) Segment Site Rental Gross Margin, (32) Segment
Services and Other Gross Margin, (33) Segment Operating Profit and
(34) 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 data, and we may be
adversely affected by any slowdown in such demand.
Additionally, a reduction in the amount or change in the mix of
network investment by our tenants may materially and adversely
affect our business (including reducing demand for our
communications infrastructure or services).
- A substantial portion of our revenues is derived from a small
number of tenants, and the loss, consolidation or financial
instability of any of such tenants may materially decrease revenues
or reduce demand for our communications infrastructure and
services.
- 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.
- Our Fiber segment has expanded rapidly, and the Fiber business
model contains certain differences from our Towers business model,
resulting in different operational risks. If we do not
successfully operate our Fiber business model or identify or manage
the related operational risks, such operations may produce results
that are lower than anticipated.
- Failure to timely and efficiently execute on our construction
projects could adversely affect our business.
- Our substantial level of indebtedness could adversely affect
our ability to react to changes in our business, and the terms of
our debt instruments and our 6.875% Mandatory Convertible Preferred
Stock 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 or securities convertible into 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 negotiate favorable rates on our new or renewing
tenant contracts.
- New technologies may reduce demand for our communications
infrastructure or negatively impact our revenues.
- If we fail to retain rights to our communications
infrastructure, including the land interests under our towers and
the right-of-way and other agreements related to our small cells
and fiber, our business may be adversely affected.
- Our 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
tenants 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 or other unforeseen
events that could adversely affect our operations, business, and
reputation.
- We have concluded that certain of our previously-issued
consolidated financial statements should not be relied upon and we
have restated such previously-issued consolidated financial
statements, which may result in loss of investor confidence,
negative impact on our stock price, shareholder litigation, and
certain other risks.
- We identified one or more material weaknesses in our internal
control over financial reporting. If we are unable to remediate
such material weakness(es), or if we experience additional material
weaknesses or other deficiencies in the future or otherwise fail to
maintain an effective system of internal controls, we may not be
able to accurately and timely report our financial results, in
which case our business may be harmed, investors may lose
confidence in the accuracy and completeness of our financial
reports, and the stock price may decline.
- 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.
- If we fail to pay scheduled dividends on our 6.875% Mandatory
Convertible Preferred Stock (prior to the automatic conversion in
August 2020), 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.
- 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.
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 SEC. Our
filings with the SEC are available through the SEC website at
www.sec.gov or through our
investor relations website at investor.crowncastle.com. We use our
investor relations website to disclose information about us that
may be deemed to be material. We encourage investors, the media and
others interested in us to visit our investor relations website
from time to time to review up-to-date information or to sign up
for e-mail alerts to be notified when new or updated information is
posted on the site.
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)
(Amounts in millions, except par values) |
|
December 31,
2019 |
|
December 31,
2018 |
|
|
|
(As Restated) |
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
196 |
|
|
$ |
277 |
|
Restricted cash |
137 |
|
|
131 |
|
Receivables, net |
596 |
|
|
501 |
|
Prepaid expenses(a) |
107 |
|
|
172 |
|
Other current assets |
168 |
|
|
148 |
|
Total current assets |
1,204 |
|
|
1,229 |
|
Deferred site rental
receivables |
1,424 |
|
|
1,366 |
|
Property and equipment,
net |
14,689 |
|
|
13,676 |
|
Operating lease right-of-use
assets(a) |
6,133 |
|
|
— |
|
Goodwill |
10,078 |
|
|
10,078 |
|
Other intangible assets,
net(a) |
4,836 |
|
|
5,516 |
|
Long-term prepaid rent and
other assets, net(a) |
116 |
|
|
920 |
|
Total assets |
$ |
38,480 |
|
|
$ |
32,785 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
334 |
|
|
$ |
313 |
|
Accrued interest |
169 |
|
|
148 |
|
Deferred revenues |
661 |
|
|
591 |
|
Other accrued liabilities(a) |
361 |
|
|
351 |
|
Current maturities of debt and other obligations |
100 |
|
|
107 |
|
Current portion of operating lease liabilities(a) |
299 |
|
|
— |
|
Total current liabilities |
1,924 |
|
|
1,510 |
|
Debt and other long-term
obligations |
18,021 |
|
|
16,575 |
|
Operating lease
liabilities(a) |
5,511 |
|
|
— |
|
Other long-term
liabilities(a) |
2,526 |
|
|
3,123 |
|
Total liabilities |
27,982 |
|
|
21,208 |
|
Commitments and
contingencies |
|
|
|
CCIC stockholders'
equity: |
|
|
|
Common stock, $0.01 par value; 600 shares authorized; shares issued
and outstanding: December 31, 2019—416 and December 31,
2018—415 |
4 |
|
|
4 |
|
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par
value; 20 shares authorized; shares issued and outstanding:
December 31, 2019—2 and December 31, 2018—2; aggregate
liquidation value: December 31, 2019—$1,650 and December 31,
2018—$1,650 |
— |
|
|
— |
|
Additional paid-in capital |
17,855 |
|
|
17,767 |
|
Accumulated other comprehensive income (loss) |
(5 |
) |
|
(5 |
) |
Dividends/distributions in excess of earnings |
(7,356 |
) |
|
(6,189 |
) |
Total equity |
10,498 |
|
|
11,577 |
|
Total liabilities and equity |
$ |
38,480 |
|
|
$ |
32,785 |
|
- Effective January 1, 2019, we adopted new guidance on the
recognition, measurement, presentation and disclosure of
leases. The new guidance requires lessees to recognize a
lease liability, initially measured at the present value of the
lease payments for all leases, and a corresponding right-of-use
asset. The accounting for lessors remained largely unchanged from
previous guidance. As a result of the new guidance for
leases, on the effective date, certain amounts related to our
lessee arrangements that were previously reported separately have
been de-recognized and reclassified into "Operating lease
right-of-use assets" on the condensed consolidated balance sheet as
of December 31, 2019.
CROWN CASTLE
INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(Amounts in millions, except per share amounts) |
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
(As Restated) |
|
|
|
(As Restated) |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,301 |
|
|
$ |
1,232 |
|
|
$ |
5,098 |
|
|
$ |
4,800 |
|
Services and other |
128 |
|
|
174 |
|
|
675 |
|
|
574 |
|
Net revenues |
1,429 |
|
|
1,406 |
|
|
5,773 |
|
|
5,374 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations (exclusive of depreciation, amortization and
accretion): |
|
|
|
|
|
|
|
Site rental |
367 |
|
|
353 |
|
|
1,462 |
|
|
1,410 |
|
Services and other |
119 |
|
|
135 |
|
|
529 |
|
|
434 |
|
Selling, general and administrative |
157 |
|
|
145 |
|
|
614 |
|
|
563 |
|
Asset write-down charges |
6 |
|
|
8 |
|
|
19 |
|
|
26 |
|
Acquisition and integration costs |
3 |
|
|
9 |
|
|
13 |
|
|
27 |
|
Depreciation, amortization and accretion |
398 |
|
|
390 |
|
|
1,574 |
|
|
1,528 |
|
Total operating expenses |
1,050 |
|
|
1,040 |
|
|
4,211 |
|
|
3,988 |
|
Operating income (loss) |
379 |
|
|
366 |
|
|
1,562 |
|
|
1,386 |
|
Interest expense and
amortization of deferred financing costs |
(173 |
) |
|
(164 |
) |
|
(683 |
) |
|
(642 |
) |
Gains (losses) on retirement
of long-term obligations |
— |
|
|
— |
|
|
(2 |
) |
|
(106 |
) |
Interest income |
1 |
|
|
2 |
|
|
6 |
|
|
5 |
|
Other income (expense) |
7 |
|
|
1 |
|
|
1 |
|
|
1 |
|
Income (loss) before income
taxes |
214 |
|
|
205 |
|
|
884 |
|
|
644 |
|
Benefit (provision) for income
taxes |
(6 |
) |
|
(5 |
) |
|
(21 |
) |
|
(19 |
) |
Net income (loss) |
208 |
|
|
200 |
|
|
863 |
|
|
625 |
|
Dividends/distributions on
preferred stock |
(28 |
) |
|
(28 |
) |
|
(113 |
) |
|
(113 |
) |
Net income (loss) attributable
to CCIC common stockholders |
$ |
180 |
|
|
$ |
172 |
|
|
$ |
750 |
|
|
$ |
512 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders,
basic |
$ |
0.43 |
|
|
$ |
0.41 |
|
|
$ |
1.80 |
|
|
$ |
1.24 |
|
Net income (loss) attributable to CCIC common stockholders,
diluted |
$ |
0.43 |
|
|
$ |
0.41 |
|
|
$ |
1.80 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
416 |
|
|
415 |
|
|
416 |
|
|
413 |
|
Diluted |
418 |
|
|
417 |
|
|
418 |
|
|
415 |
|
CROWN CASTLE
INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(In millions of dollars) |
|
Twelve Months Ended December 31, |
|
2019 |
|
2018 |
|
|
|
(As Restated) |
Cash flows from
operating activities: |
|
|
|
Net income
(loss) |
$ |
863 |
|
|
$ |
625 |
|
Adjustments to reconcile net
income (loss) to net cash provided by (used for) operating
activities: |
|
|
|
Depreciation, amortization and accretion |
1,574 |
|
|
1,528 |
|
(Gains) losses on retirement of long-term obligations |
2 |
|
|
106 |
|
Amortization of deferred financing costs and other non-cash
interest |
1 |
|
|
7 |
|
Stock-based compensation expense |
117 |
|
|
103 |
|
Asset write-down charges |
19 |
|
|
26 |
|
Deferred income tax (benefit) provision |
2 |
|
|
2 |
|
Other non-cash adjustments, net |
(2 |
) |
|
2 |
|
Changes in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
Increase (decrease) in liabilities |
291 |
|
|
322 |
|
Decrease (increase) in assets |
(167 |
) |
|
(219 |
) |
Net cash provided by (used for) operating activities |
2,700 |
|
|
2,502 |
|
Cash flows from
investing activities: |
|
|
|
Capital expenditures |
(2,059 |
) |
|
(1,741 |
) |
Payments for acquisitions, net of cash acquired |
(17 |
) |
|
(42 |
) |
Other investing activities, net |
(7 |
) |
|
(12 |
) |
Net cash provided by (used for) investing activities |
(2,083 |
) |
|
(1,795 |
) |
Cash flows from
financing activities: |
|
|
|
Proceeds from issuance of long-term debt |
1,894 |
|
|
2,742 |
|
Principal payments on debt and other long-term obligations |
(86 |
) |
|
(105 |
) |
Purchases and redemptions of long-term debt |
(12 |
) |
|
(2,346 |
) |
Borrowings under revolving credit facility |
2,110 |
|
|
1,820 |
|
Payments under revolving credit facility |
(2,660 |
) |
|
(1,725 |
) |
Net borrowings (repayments) under commercial paper program |
155 |
|
|
— |
|
Payments for financing costs |
(24 |
) |
|
(31 |
) |
Net proceeds from issuance of common stock |
— |
|
|
841 |
|
Purchases of common stock |
(44 |
) |
|
(34 |
) |
Dividends/distributions paid on common stock |
(1,912 |
) |
|
(1,782 |
) |
Dividends/distributions paid on preferred stock |
(113 |
) |
|
(113 |
) |
Net cash provided by (used for) financing activities |
(692 |
) |
|
(733 |
) |
Net increase
(decrease) in cash, cash equivalents, and restricted
cash |
(75 |
) |
|
(26 |
) |
Effect of exchange
rate changes on cash |
— |
|
|
(1 |
) |
Cash, cash equivalents, and restricted cash at beginning of
period |
413 |
|
|
440 |
|
Cash, cash
equivalents, and restricted cash at end of period |
$ |
338 |
|
|
$ |
413 |
|
Supplemental
disclosure of cash flow information: |
|
|
|
Interest paid |
661 |
|
|
619 |
|
Income taxes paid |
16 |
|
|
17 |
|
CROWN CASTLE
INTERNATIONAL CORP.
SEGMENT OPERATING RESULTS (UNAUDITED)
(In millions of dollars) |
SEGMENT OPERATING RESULTS |
|
Three Months Ended December 31, 2019 |
|
Three Months Ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
(As Restated) |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
Segment site rental revenues |
$ |
864 |
|
|
$ |
437 |
|
|
|
|
$ |
1,301 |
|
|
$ |
821 |
|
|
$ |
411 |
|
|
|
|
$ |
1,232 |
|
Segment services and other
revenues |
122 |
|
|
6 |
|
|
|
|
128 |
|
|
166 |
|
|
8 |
|
|
|
|
174 |
|
Segment revenues |
986 |
|
|
443 |
|
|
|
|
1,429 |
|
|
987 |
|
|
419 |
|
|
|
|
1,406 |
|
Segment site rental cost of
operations |
217 |
|
|
141 |
|
|
|
|
358 |
|
|
207 |
|
|
138 |
|
|
|
|
345 |
|
Segment services and other
cost of operations |
114 |
|
|
3 |
|
|
|
|
117 |
|
|
127 |
|
|
5 |
|
|
|
|
132 |
|
Segment cost of
operations(a)(b) |
331 |
|
|
144 |
|
|
|
|
475 |
|
|
334 |
|
|
143 |
|
|
|
|
477 |
|
Segment site rental gross
margin(c) |
647 |
|
|
296 |
|
|
|
|
943 |
|
|
614 |
|
|
273 |
|
|
|
|
887 |
|
Segment services and other
gross margin(c) |
8 |
|
|
3 |
|
|
|
|
11 |
|
|
39 |
|
|
3 |
|
|
|
|
42 |
|
Segment selling, general and
administrative expenses(b) |
23 |
|
|
48 |
|
|
|
|
71 |
|
|
29 |
|
|
47 |
|
|
|
|
76 |
|
Segment operating
profit(c) |
632 |
|
|
251 |
|
|
|
|
883 |
|
|
624 |
|
|
229 |
|
|
|
|
853 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
65 |
|
|
65 |
|
|
|
|
|
|
$ |
50 |
|
|
50 |
|
Stock-based compensation
expense |
|
|
|
|
27 |
|
|
27 |
|
|
|
|
|
|
25 |
|
|
25 |
|
Depreciation, amortization and
accretion |
|
|
|
|
398 |
|
|
398 |
|
|
|
|
|
|
390 |
|
|
390 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
173 |
|
|
173 |
|
|
|
|
|
|
164 |
|
|
164 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
6 |
|
|
6 |
|
|
|
|
|
|
19 |
|
|
19 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
214 |
|
|
|
|
|
|
|
|
$ |
205 |
|
- Exclusive of depreciation, amortization and accretion shown
separately.
- Segment cost of operations excludes (1) stock-based
compensation expense of $6 million for both of the three months
ended December 31, 2019 and 2018, and (2) prepaid lease purchase
price adjustments of $5 million for both of the three months ended
December 31, 2019 and 2018. Selling, general and administrative
expenses exclude stock-based compensation expense of $21 million
and $19 million for the three months ended December 31, 2019 and
2018, respectively.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions
of segment site rental gross margin, segment services and other
gross margin and segment operating profit.
- See condensed consolidated statement of operations for further
information.
SEGMENT OPERATING RESULTS |
|
Twelve Months Ended December 31, 2019 |
|
Twelve Months Ended December 31, 2018 |
|
|
|
|
|
|
|
|
|
(As Restated) |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
|
Towers |
|
Fiber |
|
Other |
|
Consolidated Total |
Segment site rental revenues |
$ |
3,394 |
|
|
$ |
1,704 |
|
|
|
|
$ |
5,098 |
|
|
$ |
3,200 |
|
|
$ |
1,600 |
|
|
|
|
$ |
4,800 |
|
Segment services and other
revenues |
658 |
|
|
17 |
|
|
|
|
675 |
|
|
558 |
|
|
16 |
|
|
|
|
574 |
|
Segment revenues |
4,052 |
|
|
1,721 |
|
|
|
|
5,773 |
|
|
3,758 |
|
|
1,616 |
|
|
|
|
5,374 |
|
Segment site rental cost of
operations |
864 |
|
|
559 |
|
|
|
|
1,423 |
|
|
848 |
|
|
525 |
|
|
|
|
1,373 |
|
Segment services and other
cost of operations |
511 |
|
|
11 |
|
|
|
|
522 |
|
|
415 |
|
|
11 |
|
|
|
|
426 |
|
Segment cost of
operations(a)(b) |
1,375 |
|
|
570 |
|
|
|
|
1,945 |
|
|
1,263 |
|
|
536 |
|
|
|
|
1,799 |
|
Segment site rental gross
margin(c) |
2,530 |
|
|
1,145 |
|
|
|
|
3,675 |
|
|
2,352 |
|
|
1,075 |
|
|
|
|
3,427 |
|
Segment services and other
gross margin(c) |
147 |
|
|
6 |
|
|
|
|
153 |
|
|
143 |
|
|
5 |
|
|
|
|
148 |
|
Segment selling, general and
administrative expenses(b) |
96 |
|
|
195 |
|
|
|
|
291 |
|
|
110 |
|
|
179 |
|
|
|
|
289 |
|
Segment operating
profit(c) |
2,581 |
|
|
956 |
|
|
|
|
3,537 |
|
|
2,385 |
|
|
901 |
|
|
|
|
3,286 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
233 |
|
|
233 |
|
|
|
|
|
|
$ |
191 |
|
|
191 |
|
Stock-based compensation
expense |
|
|
|
|
116 |
|
|
116 |
|
|
|
|
|
|
108 |
|
|
108 |
|
Depreciation, amortization and
accretion |
|
|
|
|
1,574 |
|
|
1,574 |
|
|
|
|
|
|
1,528 |
|
|
1,528 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
683 |
|
|
683 |
|
|
|
|
|
|
642 |
|
|
642 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
47 |
|
|
47 |
|
|
|
|
|
|
173 |
|
|
173 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
884 |
|
|
|
|
|
|
|
|
$ |
644 |
|
- Exclusive of depreciation, amortization and accretion shown
separately.
- Segment cost of operations excludes (1) stock-based
compensation expense of $26 million and $25 million for the twelve
months ended December 31, 2019 and 2018, respectively, and (2)
prepaid lease purchase price adjustments of $20 million for both of
the twelve months ended December 31, 2019 and 2018. Selling,
general and administrative expenses exclude stock-based
compensation expense of $90 million and $83 million for the twelve
months ended December 31, 2019 and 2018, respectively.
- See "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein for a discussion of our definitions
of segment site rental gross margin, segment services and other
gross margin and segment operating profit.
- See condensed consolidated statement of operations for further
information.
Expected Impact of Restatement on Previously-Issued
Financial Statements
As a result of the identified errors
described above, we will restate our financial statements for the
years ended December 31, 2018 and 2017, and unaudited
financial information for the quarterly and year-to-date
periods in the year ended December 31, 2018 and for the first three
quarters in the year ended December 31, 2019. We refer to the
adjustments to correct the historical errors as "Restatement
Adjustments."
In addition to the Restatement
Adjustments, we have also made other adjustments to the
financial statements referenced above to correct errors which
were not material, individually or in the aggregate, to our
consolidated financial statements. All such immaterial
adjustments relate exclusively to our Towers segment.
Collectively, we refer to the Restatement Adjustments and
immaterial adjustments as "Historical Adjustments."
We will also restate selected historical
consolidated financial and other data for the years ended December
31, 2016 and 2015 to reflect the impact of the Historical
Adjustments. Restated financial statements and selected
historical consolidated financial and other data for such periods
will be reflected in our Annual Report on Form 10-K for the year
ended December 31, 2019, which we expect to file within the
prescribed timeline for such report, including any available
extension if needed to finalize the consolidated financial
statements and disclosures and complete the associated audit
work.
Preliminary Restatement of Previously-Issued
Annual Financial Statements
This section summarizes the expected unaudited
effects of the Company's restatement to certain of its
previously-issued annual financial statements for the years ended
December 31, 2017 and 2018. "As Reported" amounts represent
amounts as previously reported on the Company’s respective Annual
Reports on Form 10-K. The following tables also reflect the
expected unaudited impact of the Historical Adjustments, where
applicable, on each annual period below.
Condensed Consolidated Balance
Sheet
|
December 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
498 |
|
|
$ |
93 |
|
|
$ |
— |
|
|
$ |
591 |
|
Total current liabilities |
1,417 |
|
|
93 |
|
|
— |
|
|
1,510 |
|
Other long-term liabilities |
2,759 |
|
|
364 |
|
|
— |
|
|
3,123 |
|
Total liabilities |
20,751 |
|
|
457 |
|
|
— |
|
|
21,208 |
|
Dividends/distributions in excess of earnings |
(5,732 |
) |
|
(457 |
) |
|
— |
|
|
(6,189 |
) |
Total equity |
12,034 |
|
|
(457 |
) |
|
— |
|
|
11,577 |
|
Total liabilities and equity |
$ |
32,785 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32,785 |
|
Condensed Consolidated Statement of Operations
|
Year Ended December 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
4,716 |
|
|
$ |
84 |
|
|
$ |
— |
|
|
$ |
4,800 |
|
Services and other |
707 |
|
|
(130 |
) |
|
(3 |
) |
|
574 |
|
Net revenues |
5,423 |
|
|
(46 |
) |
|
(3 |
) |
|
5,374 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
437 |
|
|
— |
|
|
(3 |
) |
|
434 |
|
Total operating expenses |
3,991 |
|
|
— |
|
|
(3 |
) |
|
3,988 |
|
Operating income (loss) |
1,432 |
|
|
(46 |
) |
|
— |
|
|
1,386 |
|
Income (loss) before income
taxes |
690 |
|
|
(46 |
) |
|
— |
|
|
644 |
|
Net income (loss) |
671 |
|
|
(46 |
) |
|
— |
|
|
625 |
|
Net income (loss) attributable
to CCIC common stockholders |
$ |
558 |
|
|
$ |
(46 |
) |
|
$ |
— |
|
|
$ |
512 |
|
Net income (loss) attributable to
CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
1.35 |
|
|
$ |
(0.11 |
) |
|
$ |
— |
|
|
$ |
1.24 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
1.34 |
|
|
$ |
(0.11 |
) |
|
$ |
— |
|
|
$ |
1.23 |
|
|
Year Ended December 31, 2017 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
3,669 |
|
|
$ |
68 |
|
|
$ |
— |
|
|
$ |
3,737 |
|
Services and other |
687 |
|
|
(135 |
) |
|
(31 |
) |
|
521 |
|
Net revenues |
4,356 |
|
|
(67 |
) |
|
(31 |
) |
|
4,258 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
420 |
|
|
— |
|
|
(21 |
) |
|
399 |
|
Total operating expenses |
3,310 |
|
|
— |
|
|
(21 |
) |
|
3,289 |
|
Operating income (loss) |
1,046 |
|
|
(67 |
) |
|
(10 |
) |
|
969 |
|
Income (loss) before income
taxes |
471 |
|
|
(67 |
) |
|
(10 |
) |
|
394 |
|
Net income (loss) |
445 |
|
|
(67 |
) |
|
(10 |
) |
|
368 |
|
Net income (loss) attributable
to CCIC common stockholders |
$ |
387 |
|
|
$ |
(67 |
) |
|
$ |
(10 |
) |
|
$ |
310 |
|
Net income (loss) attributable to
CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
1.01 |
|
|
$ |
(0.17 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.81 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
1.01 |
|
|
$ |
(0.17 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.81 |
|
(a) Exclusive of depreciation,
amortization and accretion shown separately.
Condensed Consolidated Statement of Cash Flows
|
Year Ended December 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
671 |
|
|
$ |
(46 |
) |
|
$ |
— |
|
|
$ |
625 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
276 |
|
|
|
46 |
|
|
|
— |
|
|
322 |
|
Net cash provided by (used for) operating activities |
|
2,502 |
|
|
|
— |
|
|
|
— |
|
|
|
2,502 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(26 |
) |
|
— |
|
|
— |
|
|
(26 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
440 |
|
|
— |
|
|
— |
|
|
440 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
413 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
413 |
|
|
Year Ended December 31, 2017 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
445 |
|
|
$ |
(67 |
) |
|
$ |
(10 |
) |
|
$ |
368 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
|
176 |
|
|
|
67 |
|
|
|
— |
|
|
|
243 |
|
Decrease (increase) in assets |
|
45 |
|
|
|
— |
|
|
|
10 |
|
|
|
55 |
|
Net cash provided by (used for) operating activities |
|
2,043 |
|
|
|
— |
|
|
|
— |
|
|
|
2,043 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(258 |
) |
|
— |
|
|
— |
|
|
(258 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
697 |
|
|
— |
|
|
— |
|
|
697 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
440 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
440 |
|
Condensed Consolidated Statement of Equity
|
December 31, 2016 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Dividends/distributions in excess of earnings |
$ |
(3,379 |
) |
|
$ |
(344 |
) |
|
$ |
10 |
|
|
$ |
(3,713 |
) |
Total stockholders' equity |
$ |
7,557 |
|
|
$ |
(344 |
) |
|
$ |
10 |
|
|
$ |
7,223 |
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Dividends/distributions in
excess of earnings |
$ |
(4,505 |
) |
|
$ |
(411 |
) |
|
$ |
— |
|
|
$ |
(4,916 |
) |
Total stockholders' equity |
$ |
12,339 |
|
|
$ |
(411 |
) |
|
$ |
— |
|
|
$ |
11,928 |
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Dividends/distributions in
excess of earnings |
$ |
(5,732 |
) |
|
$ |
(457 |
) |
|
$ |
— |
|
|
$ |
(6,189 |
) |
Total stockholders' equity |
$ |
12,034 |
|
|
$ |
(457 |
) |
|
$ |
— |
|
|
$ |
11,577 |
|
Preliminary Restatement of Previously-Issued Interim
Unaudited Quarterly Financial Information
The following tables represent the Company’s
expected impact to previously issued unaudited
quarterly financial information for each of the
applicable interim periods during the nine months ended September
30, 2019 and twelve months ended December 31, 2018. The
amounts previously issued were derived from the Company’s
respective Quarterly Reports on Form 10-Q, and, for the fourth
quarter of 2018, from its 2018 Annual Report on Form 10-K.
The following tables also reflect the expected unaudited impact of
the Historical Adjustments, where applicable, on each interim
period below.
Condensed Consolidated Balance Sheet
|
September 30, 2019 |
|
June 30, 2019 |
|
March 31, 2019 |
|
(As Restated) |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
182 |
|
|
$ |
288 |
|
|
$ |
245 |
|
Restricted cash |
138 |
|
|
136 |
|
|
158 |
|
Receivables, net |
667 |
|
|
591 |
|
|
545 |
|
Prepaid expenses |
99 |
|
|
111 |
|
|
85 |
|
Other current assets |
167 |
|
|
168 |
|
|
160 |
|
Total current assets |
1,253 |
|
|
1,294 |
|
|
1,193 |
|
Deferred site rental
receivables |
1,413 |
|
|
1,391 |
|
|
1,373 |
|
Property and equipment, net |
14,416 |
|
|
14,151 |
|
|
13,883 |
|
Operating lease right-of-use
assets |
6,112 |
|
|
6,053 |
|
|
5,969 |
|
Goodwill |
10,078 |
|
|
10,078 |
|
|
10,078 |
|
Other intangible assets, net |
4,968 |
|
|
5,074 |
|
|
5,178 |
|
Long-term prepaid rent and other
assets, net |
104 |
|
|
106 |
|
|
104 |
|
Total assets |
$ |
38,344 |
|
|
$ |
38,147 |
|
|
$ |
37,778 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
368 |
|
|
$ |
337 |
|
|
$ |
311 |
|
Accrued interest |
110 |
|
|
166 |
|
|
107 |
|
Deferred revenues |
642 |
|
|
611 |
|
|
602 |
|
Other accrued liabilities |
335 |
|
|
305 |
|
|
262 |
|
Current maturities of debt and other obligations |
100 |
|
|
98 |
|
|
96 |
|
Current portion of operating lease liabilities |
296 |
|
|
289 |
|
|
287 |
|
Total current liabilities |
1,851 |
|
|
1,806 |
|
|
1,665 |
|
Debt and other long-term
obligations |
17,750 |
|
|
17,471 |
|
|
17,120 |
|
Operating lease liabilities |
5,480 |
|
|
5,427 |
|
|
5,338 |
|
Other long-term liabilities |
2,469 |
|
|
2,423 |
|
|
2,383 |
|
Total liabilities |
27,550 |
|
|
27,127 |
|
|
26,506 |
|
Commitments and
contingencies |
|
|
|
|
|
CCIC stockholders' equity: |
|
|
|
|
|
Common stock, $0.01 par value |
4 |
|
|
4 |
|
|
4 |
|
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par
value |
— |
|
|
— |
|
|
— |
|
Additional paid-in capital |
17,829 |
|
|
17,801 |
|
|
17,769 |
|
Accumulated other comprehensive income (loss) |
(5 |
) |
|
(5 |
) |
|
(5 |
) |
Dividends/distributions in excess of earnings |
(7,034 |
) |
|
(6,780 |
) |
|
(6,496 |
) |
Total equity |
10,794 |
|
|
11,020 |
|
|
11,272 |
|
Total liabilities and equity |
$ |
38,344 |
|
|
$ |
38,147 |
|
|
$ |
37,778 |
|
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
(As Restated) |
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
323 |
|
|
$ |
206 |
|
|
$ |
220 |
|
Restricted cash |
125 |
|
|
125 |
|
|
120 |
|
Receivables, net |
471 |
|
|
455 |
|
|
402 |
|
Prepaid expenses |
182 |
|
|
197 |
|
|
175 |
|
Other current assets |
148 |
|
|
181 |
|
|
157 |
|
Total current assets |
1,249 |
|
|
1,164 |
|
|
1,074 |
|
Deferred site rental
receivables |
1,357 |
|
|
1,303 |
|
|
1,304 |
|
Property and equipment, net |
13,433 |
|
|
13,218 |
|
|
13,051 |
|
Goodwill |
10,074 |
|
|
10,075 |
|
|
10,075 |
|
Other intangible assets, net |
5,620 |
|
|
5,729 |
|
|
5,854 |
|
Long-term prepaid rent and other
assets, net |
911 |
|
|
885 |
|
|
892 |
|
Total assets |
$ |
32,644 |
|
|
$ |
32,374 |
|
|
$ |
32,250 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
302 |
|
|
$ |
272 |
|
|
$ |
248 |
|
Accrued interest |
101 |
|
|
154 |
|
|
104 |
|
Deferred revenues |
572 |
|
|
558 |
|
|
543 |
|
Other accrued liabilities |
306 |
|
|
272 |
|
|
240 |
|
Current maturities of debt and other obligations |
111 |
|
|
112 |
|
|
130 |
|
Total current liabilities |
1,392 |
|
|
1,368 |
|
|
1,265 |
|
Debt and other long-term
obligations |
16,313 |
|
|
15,844 |
|
|
15,616 |
|
Other long-term liabilities |
3,088 |
|
|
3,029 |
|
|
2,961 |
|
Total liabilities |
20,793 |
|
|
20,241 |
|
|
19,842 |
|
Commitments and
contingencies |
|
|
|
|
|
CCIC stockholders' equity: |
|
|
|
|
|
Common stock, $0.01 par value |
4 |
|
|
4 |
|
|
4 |
|
6.875% Mandatory Convertible Preferred Stock, Series A, $0.01 par
value |
— |
|
|
— |
|
|
— |
|
Additional paid-in capital |
17,743 |
|
|
17,711 |
|
|
17,690 |
|
Accumulated other comprehensive income (loss) |
(5 |
) |
|
(5 |
) |
|
(4 |
) |
Dividends/distributions in excess of earnings |
(5,891 |
) |
|
(5,577 |
) |
|
(5,282 |
) |
Total equity |
11,851 |
|
|
12,133 |
|
|
12,408 |
|
Total liabilities and equity |
$ |
32,644 |
|
|
$ |
32,374 |
|
|
$ |
32,250 |
|
The following tables illustrate the estimated
Historical Adjustments, where applicable, on the Company’s
condensed consolidated balance sheet for each period
presented. Only line items impacted by the Historical
Adjustments are presented, and as such, components will not sum to
totals.
|
September 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
525 |
|
|
$ |
117 |
|
|
$ |
— |
|
|
$ |
642 |
|
Total current liabilities |
1,734 |
|
|
117 |
|
|
— |
|
|
1,851 |
|
Other long-term liabilities |
2,055 |
|
|
414 |
|
|
|
|
2,469 |
|
Total liabilities |
27,019 |
|
|
531 |
|
|
— |
|
|
27,550 |
|
CCIC stockholders' equity: |
|
|
|
|
|
|
|
Dividends/distributions in excess of earnings |
(6,503 |
) |
|
(531 |
) |
|
— |
|
|
(7,034 |
) |
Total equity |
11,325 |
|
|
(531 |
) |
|
— |
|
|
10,794 |
|
Total liabilities and equity |
$ |
38,344 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
38,344 |
|
|
June 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
503 |
|
|
$ |
108 |
|
|
$ |
— |
|
|
$ |
611 |
|
Total current liabilities |
1,698 |
|
|
108 |
|
|
— |
|
|
1,806 |
|
Other long-term liabilities |
2,028 |
|
|
395 |
|
|
— |
|
|
2,423 |
|
Total liabilities |
26,624 |
|
|
503 |
|
|
— |
|
|
27,127 |
|
CCIC stockholders' equity: |
|
|
|
|
|
|
|
Dividends/distributions in excess of earnings |
(6,277 |
) |
|
(503 |
) |
|
— |
|
|
(6,780 |
) |
Total equity |
11,523 |
|
|
(503 |
) |
|
— |
|
|
11,020 |
|
Total liabilities and equity |
$ |
38,147 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
38,147 |
|
|
March 31, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
502 |
|
|
$ |
100 |
|
|
$ |
— |
|
|
$ |
602 |
|
Total current liabilities |
1,565 |
|
|
100 |
|
|
— |
|
|
1,665 |
|
Other long-term liabilities |
2,009 |
|
|
374 |
|
|
— |
|
|
2,383 |
|
Total liabilities |
26,032 |
|
|
474 |
|
|
— |
|
|
26,506 |
|
CCIC stockholders' equity: |
|
|
|
|
|
|
|
Dividends/distributions in excess of earnings |
(6,022 |
) |
|
(474 |
) |
|
— |
|
|
(6,496 |
) |
Total equity |
11,746 |
|
|
(474 |
) |
|
— |
|
|
11,272 |
|
Total liabilities and equity |
$ |
37,778 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,778 |
|
|
September 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
484 |
|
|
$ |
88 |
|
|
$ |
— |
|
|
$ |
572 |
|
Total current liabilities |
1,304 |
|
|
88 |
|
|
— |
|
|
1,392 |
|
Other long-term liabilities |
2,732 |
|
|
356 |
|
|
— |
|
|
3,088 |
|
Total liabilities |
20,349 |
|
|
444 |
|
|
— |
|
|
20,793 |
|
CCIC stockholders' equity: |
|
|
|
|
|
|
|
Dividends/distributions in excess of earnings |
(5,447 |
) |
|
(444 |
) |
|
— |
|
|
(5,891 |
) |
Total equity |
12,295 |
|
|
(444 |
) |
|
— |
|
|
11,851 |
|
Total liabilities and equity |
$ |
32,644 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32,644 |
|
|
June 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
476 |
|
|
$ |
82 |
|
|
$ |
— |
|
|
$ |
558 |
|
Total current liabilities |
1,286 |
|
|
82 |
|
|
— |
|
|
1,368 |
|
Other long-term liabilities |
2,678 |
|
|
351 |
|
|
— |
|
|
3,029 |
|
Total liabilities |
19,808 |
|
|
433 |
|
|
— |
|
|
20,241 |
|
CCIC stockholders' equity: |
|
|
|
|
|
|
|
Dividends/distributions in excess of earnings |
(5,144 |
) |
|
(433 |
) |
|
— |
|
|
(5,577 |
) |
Total equity |
12,566 |
|
|
(433 |
) |
|
— |
|
|
12,133 |
|
Total liabilities and equity |
$ |
32,374 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32,374 |
|
|
March 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Deferred revenues |
$ |
465 |
|
|
$ |
78 |
|
|
$ |
— |
|
|
$ |
543 |
|
Total current liabilities |
1,187 |
|
|
78 |
|
|
— |
|
|
1,265 |
|
Other long-term liabilities |
2,615 |
|
|
346 |
|
|
— |
|
|
2,961 |
|
Total liabilities |
19,418 |
|
|
424 |
|
|
— |
|
|
19,842 |
|
CCIC stockholders' equity: |
|
|
|
|
|
|
|
Dividends/distributions in excess of earnings |
(4,858 |
) |
|
(424 |
) |
|
— |
|
|
(5,282 |
) |
Total equity |
12,832 |
|
|
(424 |
) |
|
— |
|
|
12,408 |
|
Total liabilities and equity |
$ |
32,250 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
32,250 |
|
Condensed Consolidated Statement of Operations
|
September 30, 2019 |
|
June 30, 2019 |
|
March 31, 2019 |
|
Three Months Ended |
|
Nine Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Three Months Ended |
|
(As Restated) |
Net revenues: |
|
|
|
|
|
|
|
|
|
Site rental |
$ |
1,289 |
|
|
$ |
3,797 |
|
|
$ |
1,264 |
|
|
$ |
2,507 |
|
|
$ |
1,243 |
|
Services and other |
197 |
|
|
547 |
|
|
185 |
|
|
351 |
|
|
166 |
|
Net revenues |
1,486 |
|
|
4,344 |
|
|
1,449 |
|
|
2,858 |
|
|
1,409 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
|
|
Site rental |
369 |
|
|
1,095 |
|
|
365 |
|
|
726 |
|
|
361 |
|
Services and other |
147 |
|
|
410 |
|
|
138 |
|
|
263 |
|
|
125 |
|
Selling, general and administrative |
150 |
|
|
457 |
|
|
155 |
|
|
307 |
|
|
152 |
|
Asset write-down charges |
2 |
|
|
13 |
|
|
6 |
|
|
12 |
|
|
6 |
|
Acquisition and integration costs |
4 |
|
|
10 |
|
|
2 |
|
|
6 |
|
|
4 |
|
Depreciation, amortization and accretion |
389 |
|
|
1,176 |
|
|
393 |
|
|
787 |
|
|
394 |
|
Total operating expenses |
1,061 |
|
|
3,161 |
|
|
1,059 |
|
|
2,101 |
|
|
1,042 |
|
Operating income (loss) |
425 |
|
|
1,183 |
|
|
390 |
|
|
757 |
|
|
367 |
|
Interest expense and
amortization of deferred financing costs |
(173 |
) |
|
(510 |
) |
|
(169 |
) |
|
(337 |
) |
|
(168 |
) |
Gains (losses) on retirement
of long-term obligations |
— |
|
|
(2 |
) |
|
(1 |
) |
|
(2 |
) |
|
(1 |
) |
Interest income |
2 |
|
|
5 |
|
|
1 |
|
|
3 |
|
|
2 |
|
Other income (expense) |
(5 |
) |
|
(6 |
) |
|
— |
|
|
(1 |
) |
|
(1 |
) |
Income (loss) before income
taxes |
249 |
|
|
670 |
|
|
221 |
|
|
420 |
|
|
199 |
|
Benefit (provision) for income
taxes |
(5 |
) |
|
(15 |
) |
|
(4 |
) |
|
(10 |
) |
|
(6 |
) |
Net income (loss) |
244 |
|
|
655 |
|
|
217 |
|
|
410 |
|
|
193 |
|
Dividends/distributions on
preferred stock |
(28 |
) |
|
(85 |
) |
|
(28 |
) |
|
(57 |
) |
|
(28 |
) |
Net income (loss) attributable to CCIC common stockholders |
$ |
216 |
|
|
$ |
570 |
|
|
$ |
189 |
|
|
$ |
353 |
|
|
$ |
165 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.52 |
|
|
$ |
1.37 |
|
|
$ |
0.45 |
|
|
$ |
0.85 |
|
|
$ |
0.40 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.52 |
|
|
$ |
1.36 |
|
|
$ |
0.45 |
|
|
$ |
0.85 |
|
|
$ |
0.40 |
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
416 |
|
|
416 |
|
|
416 |
|
|
415 |
|
|
415 |
|
Diluted |
418 |
|
|
418 |
|
|
418 |
|
|
417 |
|
|
417 |
|
- Exclusive of depreciation, amortization and accretion shown
separately.
|
December 31, 2018 |
|
September
30, 2018 |
|
June 30,
2018 |
|
March 31, 2018 |
|
Three Months Ended |
|
Three Months Ended |
|
Nine Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Three Months Ended |
|
(As Restated) |
Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
Site rental |
$ |
1,232 |
|
|
$ |
1,206 |
|
|
$ |
3,568 |
|
|
$ |
1,189 |
|
|
$ |
2,362 |
|
|
$ |
1,172 |
|
Services and other |
174 |
|
|
157 |
|
|
400 |
|
|
131 |
|
|
244 |
|
|
113 |
|
Net revenues |
1,406 |
|
|
1,363 |
|
|
3,968 |
|
|
1,320 |
|
|
2,606 |
|
|
1,285 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
|
|
|
|
Site rental |
353 |
|
|
355 |
|
|
1,057 |
|
|
355 |
|
|
702 |
|
|
347 |
|
Services and other |
135 |
|
|
118 |
|
|
301 |
|
|
98 |
|
|
183 |
|
|
85 |
|
Selling, general and administrative |
145 |
|
|
145 |
|
|
418 |
|
|
138 |
|
|
273 |
|
|
134 |
|
Asset write-down charges |
8 |
|
|
8 |
|
|
18 |
|
|
6 |
|
|
9 |
|
|
3 |
|
Acquisition and integration costs |
9 |
|
|
4 |
|
|
18 |
|
|
8 |
|
|
14 |
|
|
6 |
|
Depreciation, amortization and accretion |
390 |
|
|
385 |
|
|
1,138 |
|
|
379 |
|
|
753 |
|
|
374 |
|
Total operating expenses |
1,040 |
|
|
1,015 |
|
|
2,950 |
|
|
984 |
|
|
1,934 |
|
|
949 |
|
Operating income (loss) |
366 |
|
|
348 |
|
|
1,018 |
|
|
336 |
|
|
672 |
|
|
336 |
|
Interest expense and
amortization of deferred financing costs |
(164 |
) |
|
(160 |
) |
|
(478 |
) |
|
(158 |
) |
|
(318 |
) |
|
(160 |
) |
Gains (losses) on retirement
of long-term obligations |
— |
|
|
(32 |
) |
|
(106 |
) |
|
(3 |
) |
|
(74 |
) |
|
(71 |
) |
Interest income |
2 |
|
|
1 |
|
|
4 |
|
|
1 |
|
|
2 |
|
|
1 |
|
Other income (expense) |
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
(1 |
) |
|
(1 |
) |
Income (loss) before income
taxes |
205 |
|
|
158 |
|
|
438 |
|
|
176 |
|
|
281 |
|
|
105 |
|
Benefit (provision) for income
taxes |
(5 |
) |
|
(5 |
) |
|
(13 |
) |
|
(5 |
) |
|
(9 |
) |
|
(4 |
) |
Net income (loss) |
200 |
|
|
153 |
|
|
425 |
|
|
171 |
|
|
272 |
|
|
101 |
|
Dividends/distributions on
preferred stock |
(28 |
) |
|
(28 |
) |
|
(85 |
) |
|
(28 |
) |
|
(57 |
) |
|
(28 |
) |
Net income (loss) attributable to CCIC common stockholders |
$ |
172 |
|
|
$ |
125 |
|
|
$ |
340 |
|
|
$ |
143 |
|
|
$ |
215 |
|
|
$ |
73 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.41 |
|
|
$ |
0.30 |
|
|
$ |
0.82 |
|
|
$ |
0.34 |
|
|
$ |
0.52 |
|
|
$ |
0.18 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.41 |
|
|
$ |
0.30 |
|
|
$ |
0.82 |
|
|
$ |
0.34 |
|
|
$ |
0.52 |
|
|
$ |
0.18 |
|
Weighted-average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
415 |
|
|
415 |
|
|
413 |
|
|
415 |
|
|
412 |
|
|
409 |
|
Diluted |
417 |
|
|
416 |
|
|
414 |
|
|
416 |
|
|
413 |
|
|
410 |
|
- Exclusive of depreciation, amortization and accretion shown
separately.
The following tables illustrate the estimated
Historical Adjustments, where applicable, on the Company’s
condensed consolidated statement of operations and comprehensive
income (loss) for each period presented. Only line items
impacted by the Historical Adjustments are presented, and as such,
components will not sum to totals.
|
Nine Months Ended September 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
3,718 |
|
|
$ |
79 |
|
|
$ |
— |
|
|
$ |
3,797 |
|
Services and other |
700 |
|
|
(153 |
) |
|
— |
|
|
547 |
|
Net revenues |
4,418 |
|
|
(74 |
) |
|
— |
|
|
4,344 |
|
Operating income (loss) |
1,257 |
|
|
(74 |
) |
|
— |
|
|
1,183 |
|
Income (loss) before income taxes |
744 |
|
|
(74 |
) |
|
— |
|
|
670 |
|
Net income (loss) |
729 |
|
|
(74 |
) |
|
— |
|
|
655 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
644 |
|
|
$ |
(74 |
) |
|
$ |
— |
|
|
$ |
570 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
1.55 |
|
|
$ |
(0.18 |
) |
|
$ |
— |
|
|
$ |
1.37 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
1.54 |
|
|
$ |
(0.18 |
) |
|
$ |
— |
|
|
$ |
1.36 |
|
|
Three Months Ended September 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,260 |
|
|
$ |
29 |
|
|
$ |
— |
|
|
$ |
1,289 |
|
Services and other |
254 |
|
|
(57 |
) |
|
— |
|
|
197 |
|
Net revenues |
1,514 |
|
|
(28 |
) |
|
— |
|
|
1,486 |
|
Operating income (loss) |
453 |
|
|
(28 |
) |
|
— |
|
|
425 |
|
Income (loss) before income taxes |
277 |
|
|
(28 |
) |
|
— |
|
|
249 |
|
Net income (loss) |
272 |
|
|
(28 |
) |
|
— |
|
|
244 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
244 |
|
|
$ |
(28 |
) |
|
$ |
— |
|
|
$ |
216 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.59 |
|
|
$ |
(0.07 |
) |
|
$ |
— |
|
|
$ |
0.52 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.58 |
|
|
$ |
(0.06 |
) |
|
$ |
— |
|
|
$ |
0.52 |
|
(a) Exclusive of depreciation,
amortization and accretion shown separately.
|
Six Months Ended June 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
2,457 |
|
|
$ |
50 |
|
|
$ |
— |
|
|
$ |
2,507 |
|
Services and other |
447 |
|
|
(96 |
) |
|
— |
|
|
351 |
|
Net revenues |
2,904 |
|
|
(46 |
) |
|
— |
|
|
2,858 |
|
Operating income (loss) |
803 |
|
|
(46 |
) |
|
— |
|
|
757 |
|
Income (loss) before income taxes |
466 |
|
|
(46 |
) |
|
— |
|
|
420 |
|
Net income (loss) |
456 |
|
|
(46 |
) |
|
— |
|
|
410 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
399 |
|
|
$ |
(46 |
) |
|
$ |
— |
|
|
$ |
353 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.96 |
|
|
$ |
(0.11 |
) |
|
$ |
— |
|
|
$ |
0.85 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.95 |
|
|
$ |
(0.10 |
) |
|
$ |
— |
|
|
$ |
0.85 |
|
|
Three Months Ended June 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,238 |
|
|
$ |
26 |
|
|
$ |
— |
|
|
$ |
1,264 |
|
Services and other |
240 |
|
|
(55 |
) |
|
— |
|
|
185 |
|
Net revenues |
1,478 |
|
|
(29 |
) |
|
— |
|
|
1,449 |
|
Operating income (loss) |
419 |
|
|
(29 |
) |
|
— |
|
|
390 |
|
Income (loss) before income taxes |
250 |
|
|
(29 |
) |
|
— |
|
|
221 |
|
Net income (loss) |
246 |
|
|
(29 |
) |
|
— |
|
|
217 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
218 |
|
|
$ |
(29 |
) |
|
$ |
— |
|
|
$ |
189 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.52 |
|
|
$ |
(0.07 |
) |
|
$ |
— |
|
|
$ |
0.45 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.52 |
|
|
$ |
(0.07 |
) |
|
$ |
— |
|
|
$ |
0.45 |
|
|
Three Months Ended March 31, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,219 |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
1,243 |
|
Services and other |
207 |
|
|
(41 |
) |
|
— |
|
|
166 |
|
Net revenues |
1,426 |
|
|
(17 |
) |
|
— |
|
|
1,409 |
|
Operating income (loss) |
384 |
|
|
(17 |
) |
|
— |
|
|
367 |
|
Income (loss) before income taxes |
216 |
|
|
(17 |
) |
|
— |
|
|
199 |
|
Net income (loss) |
210 |
|
|
(17 |
) |
|
— |
|
|
193 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
182 |
|
|
$ |
(17 |
) |
|
$ |
— |
|
|
$ |
165 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.44 |
|
|
$ |
(0.04 |
) |
|
$ |
— |
|
|
$ |
0.40 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.44 |
|
|
$ |
(0.04 |
) |
|
$ |
— |
|
|
$ |
0.40 |
|
(a) Exclusive of depreciation,
amortization and accretion shown separately.
|
Three Months Ended December 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,209 |
|
|
$ |
23 |
|
|
$ |
— |
|
|
$ |
1,232 |
|
Services and other |
210 |
|
|
(36 |
) |
|
— |
|
|
174 |
|
Net revenues |
1,419 |
|
|
(13 |
) |
|
— |
|
|
1,406 |
|
Operating income (loss) |
379 |
|
|
(13 |
) |
|
— |
|
|
366 |
|
Income (loss) before income taxes |
218 |
|
|
(13 |
) |
|
— |
|
|
205 |
|
Net income (loss) |
213 |
|
|
(13 |
) |
|
— |
|
|
200 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
185 |
|
|
$ |
(13 |
) |
|
$ |
— |
|
|
$ |
172 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.45 |
|
|
$ |
(0.04 |
) |
|
$ |
— |
|
|
$ |
0.41 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.44 |
|
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
0.41 |
|
|
Nine Months Ended September 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
3,507 |
|
|
$ |
61 |
|
|
$ |
— |
|
|
$ |
3,568 |
|
Services and other |
497 |
|
|
(94 |
) |
|
(3 |
) |
|
400 |
|
Net revenues |
4,004 |
|
|
(33 |
) |
|
(3 |
) |
|
3,968 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
304 |
|
|
— |
|
|
(3 |
) |
|
301 |
|
Total operating expenses |
2,953 |
|
|
— |
|
|
(3 |
) |
|
2,950 |
|
Operating income (loss) |
1,051 |
|
|
(33 |
) |
|
— |
|
|
1,018 |
|
Income (loss) before income taxes |
471 |
|
|
(33 |
) |
|
— |
|
|
438 |
|
Net income (loss) |
458 |
|
|
(33 |
) |
|
— |
|
|
425 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
373 |
|
|
$ |
(33 |
) |
|
$ |
— |
|
|
$ |
340 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.90 |
|
|
$ |
(0.08 |
) |
|
$ |
— |
|
|
$ |
0.82 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.90 |
|
|
$ |
(0.08 |
) |
|
$ |
— |
|
|
$ |
0.82 |
|
(a) Exclusive of depreciation,
amortization and accretion shown separately.
|
Three Months Ended September 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,184 |
|
|
$ |
22 |
|
|
$ |
— |
|
|
$ |
1,206 |
|
Services and other |
191 |
|
|
(33 |
) |
|
(1 |
) |
|
157 |
|
Net revenues |
1,375 |
|
|
(11 |
) |
|
(1 |
) |
|
1,363 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
119 |
|
|
— |
|
|
(1 |
) |
|
118 |
|
Total operating expenses |
1,016 |
|
|
— |
|
|
(1 |
) |
|
1,015 |
|
Operating income (loss) |
359 |
|
|
(11 |
) |
|
— |
|
|
348 |
|
Income (loss) before income taxes |
169 |
|
|
(11 |
) |
|
— |
|
|
158 |
|
Net income (loss) |
164 |
|
|
(11 |
) |
|
— |
|
|
153 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
136 |
|
|
$ |
(11 |
) |
|
$ |
— |
|
|
$ |
125 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.33 |
|
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
0.30 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.33 |
|
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
0.30 |
|
|
Six Months Ended June 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
2,323 |
|
|
$ |
39 |
|
|
$ |
— |
|
|
$ |
2,362 |
|
Services and other |
307 |
|
|
(61 |
) |
|
(2 |
) |
|
244 |
|
Net revenues |
2,630 |
|
|
(22 |
) |
|
(2 |
) |
|
2,606 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
185 |
|
|
— |
|
|
(2 |
) |
|
183 |
|
Total operating expenses |
1,936 |
|
|
— |
|
|
(2 |
) |
|
1,934 |
|
Operating income (loss) |
694 |
|
|
(22 |
) |
|
— |
|
|
672 |
|
Income (loss) before income taxes |
303 |
|
|
(22 |
) |
|
— |
|
|
281 |
|
Net income (loss) |
294 |
|
|
(22 |
) |
|
— |
|
|
272 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
237 |
|
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
215 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.58 |
|
|
$ |
(0.06 |
) |
|
$ |
— |
|
|
$ |
0.52 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.57 |
|
|
$ |
(0.05 |
) |
|
$ |
— |
|
|
$ |
0.52 |
|
(a) Exclusive of depreciation,
amortization and accretion shown separately.
|
Three Months Ended June 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,169 |
|
|
$ |
20 |
|
|
$ |
— |
|
|
$ |
1,189 |
|
Services and other |
161 |
|
|
(29 |
) |
|
(1 |
) |
|
131 |
|
Net revenues |
1,330 |
|
|
(9 |
) |
|
(1 |
) |
|
1,320 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
99 |
|
|
— |
|
|
(1 |
) |
|
98 |
|
Total operating expenses |
985 |
|
|
— |
|
|
(1 |
) |
|
984 |
|
Operating income (loss) |
345 |
|
|
(9 |
) |
|
— |
|
|
336 |
|
Income (loss) before income taxes |
185 |
|
|
(9 |
) |
|
— |
|
|
176 |
|
Net income (loss) |
180 |
|
|
(9 |
) |
|
— |
|
|
171 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
152 |
|
|
$ |
(9 |
) |
|
$ |
— |
|
|
$ |
143 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.37 |
|
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
0.34 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.36 |
|
|
$ |
(0.02 |
) |
|
$ |
— |
|
|
$ |
0.34 |
|
|
Three Months Ended March 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,153 |
|
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
1,172 |
|
Services and other |
146 |
|
|
(32 |
) |
|
(1 |
) |
|
113 |
|
Net revenues |
1,299 |
|
|
(13 |
) |
|
(1 |
) |
|
1,285 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations(a): |
|
|
|
|
|
|
|
Services and other |
86 |
|
|
— |
|
|
(1 |
) |
|
85 |
|
Total operating expenses |
950 |
|
|
— |
|
|
(1 |
) |
|
949 |
|
Operating income (loss) |
349 |
|
|
(13 |
) |
|
— |
|
|
336 |
|
Income (loss) before income taxes |
118 |
|
|
(13 |
) |
|
— |
|
|
105 |
|
Net income (loss) |
114 |
|
|
(13 |
) |
|
— |
|
|
101 |
|
Net income (loss) attributable to CCIC common stockholders |
$ |
86 |
|
|
$ |
(13 |
) |
|
$ |
— |
|
|
$ |
73 |
|
Net income (loss) attributable
to CCIC common stockholders, per common share: |
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders -
basic |
$ |
0.21 |
|
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
0.18 |
|
Net income (loss) attributable to CCIC common stockholders -
diluted |
$ |
0.21 |
|
|
$ |
(0.03 |
) |
|
$ |
— |
|
|
$ |
0.18 |
|
- Exclusive of depreciation, amortization and accretion shown
separately.
Condensed Consolidated Statement of Cash Flows
|
September 30, 2019 |
|
June 30, 2019 |
|
March 31, 2019 |
|
Nine Months Ended |
|
Six Months Ended |
|
Three Months Ended |
|
(As Restated) |
Cash flows from operating
activities: |
|
|
|
|
|
Net income (loss) |
$ |
655 |
|
|
$ |
410 |
|
|
$ |
193 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
Depreciation, amortization and accretion |
1,176 |
|
|
787 |
|
|
394 |
|
(Gains) losses on retirement of long-term obligations |
2 |
|
|
2 |
|
|
1 |
|
Amortization of deferred financing costs and other non-cash
interest |
1 |
|
|
1 |
|
|
1 |
|
Stock-based compensation expense |
91 |
|
|
62 |
|
|
29 |
|
Asset write-down charges |
13 |
|
|
12 |
|
|
6 |
|
Deferred income tax (benefit) provision |
2 |
|
|
1 |
|
|
1 |
|
Other non-cash adjustments, net |
4 |
|
|
3 |
|
|
2 |
|
Changes in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
|
|
Increase (decrease) in liabilities |
175 |
|
|
100 |
|
|
(53 |
) |
Decrease (increase) in assets |
(228 |
) |
|
(151 |
) |
|
(62 |
) |
Net cash provided by (used for) operating activities |
1,891 |
|
|
1,227 |
|
|
512 |
|
Cash flows from investing
activities: |
|
|
|
|
|
Capital expenditures |
(1,538 |
) |
|
(998 |
) |
|
(480 |
) |
Payments for acquisitions, net of cash acquired |
(15 |
) |
|
(13 |
) |
|
(10 |
) |
Other investing activities, net |
3 |
|
|
1 |
|
|
1 |
|
Net cash provided by (used for) investing activities |
(1,550 |
) |
|
(1,010 |
) |
|
(489 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
Proceeds from issuance of long-term debt |
1,895 |
|
|
995 |
|
|
996 |
|
Principal payments on debt and other long-term obligations |
(59 |
) |
|
(36 |
) |
|
(25 |
) |
Purchases and redemptions of long-term debt |
(12 |
) |
|
(12 |
) |
|
(12 |
) |
Borrowings under revolving credit facility |
1,585 |
|
|
1,195 |
|
|
710 |
|
Payments under revolving credit facility |
(2,270 |
) |
|
(1,785 |
) |
|
(1,140 |
) |
Net issuances (repayments) under commercial paper program |
— |
|
|
500 |
|
|
— |
|
Payments for financing costs |
(24 |
) |
|
(14 |
) |
|
(10 |
) |
Purchases of common stock |
(44 |
) |
|
(43 |
) |
|
(42 |
) |
Dividends/distributions paid on common stock |
(1,415 |
) |
|
(944 |
) |
|
(477 |
) |
Dividends/distributions paid on preferred stock |
(85 |
) |
|
(57 |
) |
|
(28 |
) |
Net cash provided by (used for) financing activities |
(429 |
) |
|
(201 |
) |
|
(28 |
) |
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(88 |
) |
|
16 |
|
|
(5 |
) |
Effect of exchange rate
changes on cash |
— |
|
|
— |
|
|
— |
|
Cash, cash equivalents,
and restricted cash at beginning of period |
413 |
|
|
413 |
|
|
413 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
325 |
|
|
$ |
429 |
|
|
$ |
408 |
|
|
September 30, 2018 |
|
June 30, 2018 |
|
March 31, 2018 |
|
Nine Months Ended |
|
Six Months Ended |
|
Three Months Ended |
|
(As Restated) |
Cash flows from operating
activities: |
|
|
|
|
|
Net income (loss) |
$ |
425 |
|
|
$ |
272 |
|
|
$ |
101 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
Depreciation, amortization and accretion |
1,138 |
|
|
753 |
|
|
374 |
|
(Gains) losses on retirement of long-term obligations |
106 |
|
|
74 |
|
|
71 |
|
Amortization of deferred financing costs and other non-cash
interest |
5 |
|
|
4 |
|
|
2 |
|
Stock-based compensation expense |
79 |
|
|
47 |
|
|
23 |
|
Asset write-down charges |
18 |
|
|
9 |
|
|
3 |
|
Deferred income tax (benefit) provision |
2 |
|
|
1 |
|
|
1 |
|
Other non-cash adjustments, net |
2 |
|
|
1 |
|
|
2 |
|
Changes in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
|
|
Increase (decrease) in liabilities |
177 |
|
|
100 |
|
|
(77 |
) |
Decrease (increase) in assets |
(177 |
) |
|
(150 |
) |
|
(48 |
) |
Net cash provided by (used for) operating activities |
1,775 |
|
|
1,111 |
|
|
452 |
|
Cash flows from investing
activities: |
|
|
|
|
|
Capital expenditures |
(1,241 |
) |
|
(763 |
) |
|
(370 |
) |
Payments for acquisitions, net of cash acquired |
(26 |
) |
|
(18 |
) |
|
(14 |
) |
Other investing activities, net |
(14 |
) |
|
3 |
|
|
— |
|
Net cash provided by (used for) investing activities |
(1,281 |
) |
|
(778 |
) |
|
(384 |
) |
Cash flows from financing
activities: |
|
|
|
|
|
Proceeds from issuance of long-term debt |
2,743 |
|
|
1,743 |
|
|
1,743 |
|
Principal payments on debt and other long-term obligations |
(76 |
) |
|
(47 |
) |
|
(32 |
) |
Purchases and redemptions of long-term debt |
(2,346 |
) |
|
(1,318 |
) |
|
(1,318 |
) |
Borrowings under revolving credit facility |
1,290 |
|
|
485 |
|
|
170 |
|
Payments under revolving credit facility |
(1,465 |
) |
|
(1,150 |
) |
|
(1,050 |
) |
Payments for financing costs |
(33 |
) |
|
(20 |
) |
|
(15 |
) |
Net proceeds from issuance of common stock |
841 |
|
|
841 |
|
|
843 |
|
Purchases of common stock |
(34 |
) |
|
(34 |
) |
|
(33 |
) |
Dividends/distributions paid on common stock |
(1,315 |
) |
|
(879 |
) |
|
(443 |
) |
Dividends/distributions paid on preferred stock |
(85 |
) |
|
(57 |
) |
|
(28 |
) |
Net cash provided by (used for) financing activities |
(480 |
) |
|
(436 |
) |
|
(163 |
) |
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
14 |
|
|
(103 |
) |
|
(95 |
) |
Effect of exchange rate
changes on cash |
(1 |
) |
|
(1 |
) |
|
— |
|
Cash, cash equivalents,
and restricted cash at beginning of period |
440 |
|
|
440 |
|
|
440 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
453 |
|
|
$ |
336 |
|
|
$ |
345 |
|
The following tables illustrate the estimated
Historical Adjustments, where applicable, on the Company’s
condensed consolidated statement of cash flows for each
period. Only line items impacted by the Historical
Adjustments are presented, and as such, components will not sum to
totals.
|
Nine Months Ended September 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
729 |
|
|
$ |
(74 |
) |
|
$ |
— |
|
|
$ |
655 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
101 |
|
|
74 |
|
|
— |
|
|
175 |
|
Net cash provided by (used for) operating activities |
1,891 |
|
|
— |
|
|
— |
|
|
1,891 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(88 |
) |
|
— |
|
|
— |
|
|
(88 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
413 |
|
|
— |
|
|
|
|
413 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
325 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
325 |
|
|
Six Months Ended June 30, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
456 |
|
|
$ |
(46 |
) |
|
$ |
— |
|
|
$ |
410 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
54 |
|
|
46 |
|
|
— |
|
|
100 |
|
Net cash provided by (used for) operating activities |
1,227 |
|
|
— |
|
|
— |
|
|
1,227 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
16 |
|
|
— |
|
|
— |
|
|
16 |
|
Cash, cash equivalents,
and restricted cash at beginning of period |
413 |
|
|
— |
|
|
|
|
413 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
429 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
429 |
|
|
Three Months Ended March 31, 2019 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
210 |
|
|
$ |
(17 |
) |
|
$ |
— |
|
|
$ |
193 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
(70 |
) |
|
17 |
|
|
— |
|
|
(53 |
) |
Net cash provided by (used for) operating activities |
512 |
|
|
— |
|
|
— |
|
|
512 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(5 |
) |
|
— |
|
|
— |
|
|
(5 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
413 |
|
|
— |
|
|
|
|
413 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
408 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
408 |
|
|
Nine Months Ended September 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
458 |
|
|
$ |
(33 |
) |
|
$ |
— |
|
|
$ |
425 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
144 |
|
|
33 |
|
|
— |
|
|
177 |
|
Net cash provided by (used for) operating activities |
1,775 |
|
|
— |
|
|
— |
|
|
1,775 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
14 |
|
|
— |
|
|
— |
|
|
14 |
|
Cash, cash equivalents,
and restricted cash at beginning of period |
440 |
|
|
— |
|
|
|
|
440 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
453 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
453 |
|
|
Six Months Ended June 30, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
294 |
|
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
272 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
78 |
|
|
22 |
|
|
— |
|
|
100 |
|
Net cash provided by (used for) operating activities |
1,111 |
|
|
— |
|
|
— |
|
|
1,111 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(103 |
) |
|
— |
|
|
— |
|
|
(103 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
440 |
|
|
— |
|
|
|
|
440 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
336 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
336 |
|
|
Three Months Ended March 31, 2018 |
|
As Reported |
|
Restatement Adjustments |
|
Other Adjustments |
|
As Restated |
Cash flows from operating
activities: |
|
|
|
|
|
|
|
Net income (loss) |
$ |
114 |
|
|
$ |
(13 |
) |
|
$ |
— |
|
|
$ |
101 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used for) operating activities: |
|
|
|
|
|
|
|
Increase (decrease) in liabilities |
(90 |
) |
|
13 |
|
|
— |
|
|
(77 |
) |
Net cash provided by (used for) operating activities |
452 |
|
|
— |
|
|
— |
|
|
452 |
|
Net increase (decrease)
in cash, cash equivalents, and restricted cash |
(95 |
) |
|
— |
|
|
— |
|
|
(95 |
) |
Cash, cash equivalents,
and restricted cash at beginning of period |
440 |
|
|
— |
|
|
|
|
440 |
|
Cash, cash equivalents,
and restricted cash at end of period |
$ |
345 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
345 |
|
Impact of Restatement on Selected Financial Data
|
Years Ended December 31, |
(In millions of dollars,
except per share amounts) |
2019 |
|
2018 |
|
2017 |
|
2016 |
|
2015 |
|
|
|
As Restated |
Statement of Operations
Data(a)(c): |
|
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
|
|
|
Site rental |
$ |
5,098 |
|
|
$ |
4,800 |
|
|
$ |
3,737 |
|
|
$ |
3,286 |
|
|
$ |
3,058 |
|
Services and other |
675 |
|
|
574 |
|
|
521 |
|
|
566 |
|
|
534 |
|
Net revenues |
5,773 |
|
|
5,374 |
|
|
4,258 |
|
|
3,852 |
|
|
3,592 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Costs of operations(b): |
|
|
|
|
|
|
|
|
|
Site rental |
1,462 |
|
|
1,410 |
|
|
1,144 |
|
|
1,024 |
|
|
964 |
|
Services and other |
529 |
|
|
434 |
|
|
399 |
|
|
397 |
|
|
355 |
|
Total costs of operations |
1,991 |
|
|
1,844 |
|
|
1,543 |
|
|
1,421 |
|
|
1,319 |
|
Selling, general and administrative |
614 |
|
|
563 |
|
|
426 |
|
|
371 |
|
|
310 |
|
Asset write-down charges |
19 |
|
|
26 |
|
|
17 |
|
|
34 |
|
|
33 |
|
Acquisition and integration costs |
13 |
|
|
27 |
|
|
61 |
|
|
17 |
|
|
16 |
|
Depreciation, amortization and accretion |
1,574 |
|
|
1,528 |
|
|
1,242 |
|
|
1,109 |
|
|
1,036 |
|
Operating income (loss) |
1,562 |
|
|
1,386 |
|
|
969 |
|
|
900 |
|
|
878 |
|
Interest expense and amortization
of deferred financing costs |
(683 |
) |
|
(642 |
) |
|
(591 |
) |
|
(515 |
) |
|
(527 |
) |
Gains (losses) on retirement of
long-term obligations |
(2 |
) |
|
(106 |
) |
|
(4 |
) |
|
(52 |
) |
|
(4 |
) |
Interest income |
6 |
|
|
5 |
|
|
19 |
|
|
1 |
|
|
2 |
|
Other income (expense) |
1 |
|
|
1 |
|
|
1 |
|
|
(9 |
) |
|
57 |
|
Income (loss) from continuing
operations before income taxes |
884 |
|
|
644 |
|
|
394 |
|
|
325 |
|
|
406 |
|
Benefit (provision) for income
taxes |
(21 |
) |
|
(19 |
) |
|
(26 |
) |
|
(17 |
) |
|
51 |
|
Income (loss) from continuing
operations |
863 |
|
|
625 |
|
|
368 |
|
|
308 |
|
|
457 |
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
Income (loss) from discontinued operations, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
20 |
|
Net gain (loss) from disposal of discontinued operations, net of
tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
979 |
|
Income (loss) from discontinued operations, net of tax |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
999 |
|
Net income (loss) |
863 |
|
|
625 |
|
|
368 |
|
|
308 |
|
|
1,456 |
|
Less: Net income (loss)
attributable to the noncontrolling interest |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3 |
|
Net income (loss) attributable to
CCIC stockholders |
863 |
|
|
625 |
|
|
368 |
|
|
308 |
|
|
1,453 |
|
Dividends/distributions on
preferred stock |
(113 |
) |
|
(113 |
) |
|
(58 |
) |
|
(33 |
) |
|
(44 |
) |
Net income (loss) attributable to
CCIC common stockholders |
$ |
750 |
|
|
$ |
512 |
|
|
$ |
310 |
|
|
$ |
275 |
|
|
$ |
1,409 |
|
Income (loss) from continuing
operations attributable to CCIC common stockholders, per common
share - basic |
$ |
1.80 |
|
|
$ |
1.24 |
|
|
$ |
0.81 |
|
|
$ |
0.81 |
|
|
$ |
1.24 |
|
Income (loss) from continuing
operations attributable to CCIC common stockholders, per common
share - diluted |
$ |
1.80 |
|
|
$ |
1.23 |
|
|
$ |
0.81 |
|
|
$ |
0.81 |
|
|
$ |
1.24 |
|
Weighted-average common shares
outstanding (in millions): |
|
|
|
|
|
|
|
|
|
Basic |
416 |
|
|
413 |
|
|
382 |
|
|
340 |
|
|
333 |
|
Diluted |
418 |
|
|
415 |
|
|
383 |
|
|
341 |
|
|
334 |
|
Other
Data(a)(c): |
|
|
|
|
|
|
|
|
|
Summary cash flow
information: |
|
|
|
|
|
|
|
|
|
Net cash provided by (used for) operating activities |
$ |
2,700 |
|
|
$ |
2,502 |
|
|
$ |
2,043 |
|
|
$ |
1,787 |
|
|
$ |
1,790 |
|
Net cash provided by (used for) investing activities |
(2,083 |
) |
|
(1,795 |
) |
|
(10,493 |
) |
|
(1,429 |
) |
|
(1,956 |
) |
Net cash provided by (used for) financing activities |
(692 |
) |
|
(733 |
) |
|
8,192 |
|
|
(89 |
) |
|
(952 |
) |
Balance Sheet Data (at
period end)(a)(c): |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
196 |
|
|
$ |
277 |
|
|
$ |
314 |
|
|
$ |
568 |
|
|
$ |
179 |
|
Property and equipment, net |
14,689 |
|
|
13,676 |
|
|
12,933 |
|
|
9,805 |
|
|
9,580 |
|
Total assets |
38,480 |
|
|
32,785 |
|
|
32,229 |
|
|
22,685 |
|
|
21,937 |
|
Total debt and other long-term
obligations |
18,121 |
|
|
16,682 |
|
|
16,159 |
|
|
12,171 |
|
|
12,150 |
|
Total CCIC stockholders'
equity |
10,498 |
|
|
11,577 |
|
|
11,928 |
|
|
7,223 |
|
|
6,805 |
|
- Inclusive of the impact of acquisitions.
- Exclusive of depreciation, amortization and accretion, which
are shown separately.
- Amounts reflect the impact of all applicable adopted accounting
pronouncements during the periods presented.
Contacts:
Dan Schlanger, CFO
Ben Lowe, VP & Treasurer
Crown Castle International Corp.
713-570-3050
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