Crown Castle International Corp. (NYSE: CCI) ("Crown Castle") today
reported results for the fourth quarter and full year ended
December 31, 2021 and increased its full year 2022 outlook, as
reflected in the table below.
|
Full Year 2022 |
|
Full Year 2021 |
(dollars in millions, except per share amounts) |
CurrentOutlookMidpoint(a) |
Change toMidpoint fromPreviousOutlook(b) |
MidpointGrowth RateCompared toPrevious YearActual |
|
Actual |
Actual Growth Rate Comparedto Previous Year Actual(c) |
As Reported |
As Adjusted(d) |
Site rental revenues |
$6,225 |
+$250 |
9% |
|
$5,719 |
8% |
8% |
Income (loss) from continuing
operations(e) |
$1,674 |
+$250 |
45% |
|
$1,158(f) |
10% |
39% |
Income (loss) from continuing
operations per share—diluted(e)(g) |
$3.85 |
+$0.57 |
44% |
|
$2.67(f) |
14% |
46% |
Adjusted EBITDA(e) |
$4,272 |
+$250 |
12% |
|
$3,816 |
3% |
12% |
AFFO(e)(g) |
$3,201 |
$— |
6% |
|
$3,013 |
5% |
16% |
AFFO per share(e)(g) |
$7.36 |
$— |
6% |
|
$6.95 |
3% |
14% |
- As issued on January 26, 2022.
- As issued on October 20, 2021.
- See "Results for the Year" below for our full year 2020 actual
results.
- As Adjusted growth rates exclude the impact of the cancellation
of certain small cells previously contracted with Sprint
Corporation and a reduction in staffing that occurred in fourth
quarter 2020 (collectively, "Nontypical Items"), as further
described in our press release dated January 27, 2021 and
reconciled in "Non-GAAP Financial Measures, Segment Measures and
Other Calculations" herein.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information and reconciliation of
non-GAAP financial measures to Income (loss) from continuing
operations, as computed in accordance with GAAP.
- Does not reflect the impact related to the ATO Settlement (as
defined in the Form 8-K filed with the Securities and Exchange
Commission on April 26, 2021 ("April 8-K"), which is attributable
to discontinued operations as discussed in the April 8-K.
- Attributable to CCIC common stockholders.
“We generated significant growth in 2021,
including 14% AFFO per share growth and an 11% increase in our
common stock dividend per share, as our customers began upgrading
their existing cell sites as part of the first phase of the 5G
build out in the U.S.,” stated Jay Brown, Crown Castle’s Chief
Executive Officer. “We expect elevated levels of tower leasing to
continue this year and believe we will once again lead the industry
with the highest U.S. tower revenue growth in 2022. In addition, we
secured commitments for more than 50,000 new small cell nodes
during the last twelve months, which equates to approximately 70%
of the total small cells we booked in our history prior to 2021. As
a result, we now have approximately 55,000 small cell nodes on air
and more than 60,000 committed or under construction in our
backlog. Our customers are already planning for the next phase of
the 5G build out that will require small cells at scale, and this
inflection in our small cells business reflects how well positioned
we are to support their wireless network needs for years to come
with our more than 80,000 route miles of fiber concentrated in the
top U.S. markets. I believe 2022 will be an important transition
year for our small cells and fiber business, as we prepare to
accelerate our deployment of small cells from approximately 5,000
this year to what we expect will be more than 10,000 per year
starting in 2023.
“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 the
U.S. represents the highest growth and lowest risk market in the
world for communications infrastructure ownership, and we believe
our comprehensive offering positions us to benefit from what we
expect will be a decade-long investment cycle as our customers
develop next-generation wireless networks. As a result, we expect
the deployment of 5G in the U.S. to extend our opportunity to
create long-term value for our shareholders while delivering
dividend per share growth of 7% to 8% per year.”
RESULTS FOR THE YEARThe table
below sets forth select preliminary unaudited financial results for
the year ended December 31, 2021.
|
Full Year 2021 |
|
Full Year 2020 |
|
Full Year 2021 Growth |
(dollars in millions, except per share amounts) |
Actual |
PreviousOutlookMidpoint(a) |
ActualComparedto PreviousOutlookMidpoint(a) |
|
AsReported |
AsAdjusted(b) |
|
AsReported |
|
AsAdjusted(b) |
Site rental revenues |
$5,719 |
$5,700 |
+$19 |
|
$5,320 |
$5,320 |
|
$399 |
8% |
|
$399 |
8% |
Income (loss) from continuing
operations(c) |
$1,158(d) |
$1,114(d) |
+$44 |
|
$1,056 |
$833 |
|
$102 |
10% |
|
$325 |
39% |
Income (loss) from continuing
operations per share—diluted(c)(e) |
$2.67(d) |
$2.57(d) |
+$0.10 |
|
$2.35 |
$1.83 |
|
$0.32 |
14% |
|
$0.84 |
46% |
Adjusted EBITDA(c) |
$3,816 |
$3,787 |
+$29 |
|
$3,706 |
$3,420 |
|
$110 |
3% |
|
$396 |
12% |
AFFO(c)(e) |
$3,013 |
$2,966 |
+$47 |
|
$2,878 |
$2,592 |
|
$135 |
5% |
|
$421 |
16% |
AFFO per share(c)(e) |
$6.95 |
$6.83 |
+$0.12 |
|
$6.78 |
$6.10 |
|
$0.17 |
3% |
|
$0.85 |
14% |
- As issued on October 20, 2021.
- As Adjusted figures exclude the impact of the Nontypical Items,
as further described in our press release dated January 27, 2021
and reconciled in "Non-GAAP Financial Measures, Segment Measures
and Other Calculations" herein.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information and reconciliation of
non-GAAP financial measures to Income (loss) from continuing
operations, as computed in accordance with GAAP.
- Does not reflect the impact related to the ATO Settlement (as
defined in the April 8-K), which is attributable to discontinued
operations as discussed in the April 8-K.
- Attributable to CCIC common stockholders.
HIGHLIGHTS FROM THE
YEARReferences to full year 2021 growth herein are
adjusted for the impact of Nontypical Items that occurred in fourth
quarter 2020.
- Site rental
revenues. Site rental revenues grew 8%, or $399 million,
from full year 2020 to full year 2021, inclusive of approximately
$307 million in Organic Contribution to Site Rental Revenues and an
$89 million increase in straight-lined revenues. The $307 million
in Organic Contribution to Site Rental Revenues represents
approximately 5.8% growth, comprised of approximately 9.0% growth
from new leasing activity and contracted tenant escalations, net of
approximately 3.2% from tenant non-renewals. Fourth quarter 2021
site rental revenues benefited by approximately $10 million from
items not expected to recur in 2022.
- Income from continuing
operations. Income from continuing operations for full
year 2021 was $1.2 billion compared to $1.1 billion for full year
2020, or $833 million for full year 2020 as adjusted for the impact
of Nontypical Items.
- Adjusted EBITDA.
Full year 2021 Adjusted EBITDA was $3.8 billion compared to $3.4
billion in full year 2020, as adjusted for the impact of Nontypical
Items, which represents growth of $396 million. The full year 2021
growth includes approximately $20 million of benefit from items in
the fourth quarter 2021 not contemplated in the previous 2021
Outlook, including $10 million from site rental revenues that are
not expected to recur in 2022 and $10 million from
lower-than-expected operating expenses.
- AFFO and AFFO per
share. Full year 2021 AFFO was $3.0 billion, representing
16% growth from full year 2020. The full year 2021 growth of $421
million includes the aforementioned $20 million of benefit included
in Adjusted EBITDA from items recognized in the fourth quarter 2021
not contemplated in the previous 2021 Outlook, as well as lower
sustaining capital expenditures than previously expected. AFFO per
share for full year 2021 was $6.95, representing 14% growth when
compared to full year 2020.
- Capital
expenditures. Capital expenditures during the year were
$1.2 billion, comprised of $87 million of sustaining capital
expenditures and $1.1 billion of discretionary capital
expenditures. Discretionary capital expenditures during the year
primarily included approximately $907 million attributable to Fiber
and approximately $202 million attributable to Towers.
- Common stock
dividend. During 2021, Crown Castle paid common stock
dividends of approximately $2.4 billion in the aggregate, or $5.46
per common share, an increase of approximately 11% on a per share
basis compared to the same period a year ago.
“We delivered another year of significant growth
with 14% AFFO per share growth in 2021, augmented by a high-quality
dividend that we believe provides shareholders with a compelling
total return opportunity,” stated Dan Schlanger, Crown Castle’s
Chief Financial Officer. “Our customers are busy with the initial
deployment of their 5G networks while also planning for the next
phase that will require tens of thousands of new cell sites to
increase the capacity of their networks. This activity is resulting
in an elevated level of growth in our Towers business with core
leasing activity for full year 2022 expected to be approximately
50% higher than the trailing five-year average. Looking beyond this
year, our record backlog of more than 60,000 committed small cell
nodes gives us confidence that growth for our Fiber business will
accelerate beginning in 2023. As we expect to increase the pace of
small cell deployments in 2023, we anticipate the level of our
discretionary capital investment to also trend higher. Importantly,
with a record level of collocation small cell nodes in our backlog
we expect to be able to fund this higher level of investment with
free cash flow and incremental debt capacity while maintaining our
investment grade credit profile.”
OUTLOOKThis 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.
Crown Castle's current full year 2022 Outlook,
set forth in the following table, is updated to reflect
approximately $250 million of additional straight-lined site rental
revenues for full year 2022 for its Towers segment resulting from
the previously announced long-term tower and small cell agreement
with T-Mobile. Except for changes resulting from this increase in
straight-lined site rental revenues, full year 2022 Outlook is
unchanged. The lower growth reflected in the charts below results
from the higher-than-expected 2021 results and not from a reduction
to the full year 2022 Outlook. The majority of the items that
contributed to the higher-than-expected 2021 results are not
expected to recur in 2022.
(in millions, except per share amounts) |
Full Year 2022 |
|
Change toMidpoint fromPreviousOutlook |
Site rental revenues |
$6,202 |
to |
$6,247 |
|
+$250 |
Site rental cost of operations(a) |
$1,548 |
to |
$1,593 |
|
— |
Income (loss) from continuing operations |
$1,634 |
to |
$1,714 |
|
+$250 |
Adjusted EBITDA(b) |
$4,249 |
to |
$4,294 |
|
+$250 |
Interest expense and
amortization of deferred financing costs(c) |
$615 |
to |
$660 |
|
— |
FFO(b)(d) |
$3,318 |
to |
$3,363 |
|
+$250 |
AFFO(b)(d) |
$3,178 |
to |
$3,223 |
|
— |
AFFO per share(b)(d) |
$7.31 |
to |
$7.41 |
|
— |
- Exclusive of depreciation, amortization and accretion.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further information and reconciliation of
non-GAAP financial measures to Income (loss) from continuing
operations, as computed in accordance with GAAP.
- See reconciliation of "Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing Costs" for
a discussion of non-cash interest expense.
- Attributable to CCIC common stockholders.
The chart below reconciles the components of expected growth in
site rental revenues from 2021 to 2022 of $495 million to $540
million, inclusive of Organic Contribution to Site Rental Revenues
during 2022 of $235 million to $275 million, or approximately
5%.
Chart
1: https://www.globenewswire.com/NewsRoom/AttachmentNg/9cb4efea-4114-4fab-9823-ddc459858593
The chart below reconciles the components of
expected growth in AFFO from 2021 to 2022 of $165 million to $210
million.
Chart
2: https://www.globenewswire.com/NewsRoom/AttachmentNg/45f0a7fa-892f-4f4f-a9a8-ec37940bfce7
Additional information is available in Crown
Castle's quarterly Supplemental Information Package posted in the
Investors section of our website.
CONFERENCE CALL DETAILS Crown
Castle has scheduled a conference call for Thursday, January 27,
2022, at 10:30 a.m. Eastern time to discuss its fourth quarter and
full year 2021 results. The conference call may be accessed by
dialing 800-458-4121 and asking for the Crown Castle call (access
code 6181398) 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, January 27,
2022, through 1:30 p.m. Eastern time on Wednesday, April 27, 2022,
and may be accessed by dialing 888-203-1112 and using access code
6181398. 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 CASTLECrown Castle
owns, operates and leases more than 40,000 cell towers and more
than 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
Income (loss) from continuing operations (as adjusted), including
per share—diluted amounts, 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").
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:
- Income (loss) from
continuing operations (as adjusted), including per share—diluted
amounts, is useful to investors and other interested parties in
evaluating our financial performance. Management believes that this
measure is meaningful to investors as it adjusts Income (loss) from
continuing operations to exclude the impact of the Nontypical Items
(as defined in this press release and described further in our
press release dated January 27, 2021), which management believes
are unusual (including with respect to magnitude), infrequent and
not reasonably likely to recur in the near term, to provide further
insight into our results of operations and underlying trends and
projections. Management also believes that identifying the impact
of Nontypical Items as adjustments provides more transparency and
comparability across periods. There can be no assurances that such
items will not recur in future periods. Income (loss) from
continuing operations (as adjusted), including per share—diluted
amounts should be considered only as a supplement to net income
computed in accordance with GAAP as a measure of our
performance.
- 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. Separately, we are also disclosing Adjusted EBITDA as
adjusted to exclude the impact of Nontypical Items, which
management believes are unusual (including with respect to
magnitude), infrequent and not reasonably likely to recur in the
near term, to provide further insight into our results of
operations and underlying trends and projections. Management also
believes that identifying the impact of Nontypical Items as
adjustments provides increased transparency and comparability
across periods. There can be no assurances that such items will not
recur in future periods. Adjusted EBITDA (including as further
adjusted to exclude Nontypical Items) 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 (in periods
where applicable)) 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. Separately, we are
also disclosing AFFO as adjusted to exclude the impact of
Nontypical Items, which management believes are unusual (including
with respect to magnitude), infrequent and not reasonably likely to
recur in the near term, to provide further insight into our results
of operations and underlying trends and projections. Management
also believes that identifying the impact of Nontypical Items as
adjustments provides increased transparency and comparability
across periods. There can be no assurances that such items will not
recur in future periods. AFFO (including as further adjusted to
exclude Nontypical Items) 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
Income (loss) from continuing operations (as
adjusted). We define Income (loss) from continuing operations (as
adjusted) as Income (loss) from continuing operations less other
operating income resulting from the Nontypical Items, plus
incremental operating expenses and asset write-downs as a result of
the Nontypical Items.
Income (loss) from continuing operations (as
adjusted) per share—diluted. We define Income (loss) from
continuing operations (as adjusted) per share—diluted as Income
(loss) from continuing operations (as adjusted), divided by diluted
weighted-average common shares outstanding.
Adjusted EBITDA. We define Adjusted EBITDA as
Income (loss) from continuing operations 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 and stock-based compensation
expense. Separately, Adjusted EBITDA, as adjusted to exclude the
impact of Nontypical Items, reflects Adjusted EBITDA, less other
operating income resulting from the Nontypical Items, plus
incremental operating expenses as a result of the Nontypical
Items.
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, impairment of
available-for-sale securities, acquisition and integration costs,
restructuring charges (credits), cumulative effect of a change in
accounting principle and adjustments for noncontrolling interests,
less sustaining capital expenditures. Separately, Adjusted Funds
from Operations, as adjusted to exclude the impact of Nontypical
Items, reflects Adjusted Funds from Operations, less other
operating income resulting from the Nontypical Items, plus
incremental operating expenses as a result of the Nontypical
Items.
AFFO per share. We define AFFO per share as
AFFO, including as adjusted to exclude the impact of Nontypical
Items, divided by diluted weighted-average common shares
outstanding.
Funds from Operations. We define Funds from
Operations as Income (loss) from continuing operations plus real
estate related depreciation, amortization and accretion and asset
write-down charges, less noncontrolling interest and cash paid for
preferred stock dividends (in periods where applicable), 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 costs of operations, excluding stock-based
compensation expense and prepaid lease purchase price adjustments
recorded in consolidated site rental costs 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 costs of
operations, excluding stock-based compensation expense recorded in
consolidated services and other costs of operations.
Segment Operating Profit. We define Segment
Operating Profit as segment site rental gross margin plus segment
services and other gross margin, and segment other operating
(income) expense, 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
New leasing activity. We define new leasing
activity as site rental revenues growth exclusive of the impact
from straight-line accounting from (1) tenant additions across our
entire portfolio, (2) renewals or extensions of tenant contracts
and (3) year-over-year changes in prepaid rent amortization.
Core leasing activity. We define core leasing
activity as site rental revenues growth from tenant additions
across our entire portfolio and renewals or extensions of tenant
contracts, exclusive of the impacts from both straight-line
accounting and prepaid rent amortization.
Non-renewals. We define non-renewals of tenant
contracts as the reduction in site rental revenues as a result of
tenant churn, terminations and, in limited circumstances,
reductions of existing lease rates.
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.
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.
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 |
(in millions) |
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Income (loss) from continuing operations |
$ |
353 |
|
$ |
508 |
|
$ |
1,158 |
|
(a) |
$ |
1,056 |
|
Adjustments to increase (decrease) Income (loss) from continuing
operations: |
|
|
|
|
|
|
|
Asset write-down charges |
|
12 |
|
|
64 |
|
|
21 |
|
|
|
74 |
|
Acquisition and integration costs |
|
— |
|
|
1 |
|
|
1 |
|
|
|
10 |
|
Depreciation, amortization and accretion |
|
415 |
|
|
401 |
|
|
1,644 |
|
|
|
1,608 |
|
Amortization of prepaid lease purchase price adjustments |
|
4 |
|
|
5 |
|
|
18 |
|
|
|
18 |
|
Interest expense and amortization of deferred financing
costs(b) |
|
164 |
|
|
167 |
|
|
657 |
|
|
|
689 |
|
(Gains) losses on retirement of long-term obligations |
|
— |
|
|
— |
|
|
145 |
|
|
|
95 |
|
Interest income |
|
— |
|
|
— |
|
|
(1 |
) |
|
|
(2 |
) |
Other (income) expense |
|
4 |
|
|
— |
|
|
21 |
|
|
|
5 |
|
(Benefit) provision for income taxes |
|
1 |
|
|
5 |
|
|
21 |
|
|
|
20 |
|
Stock-based compensation expense |
|
31 |
|
|
28 |
|
|
131 |
|
|
|
133 |
|
Adjusted EBITDA(c)(d) |
$ |
984 |
|
$ |
1,179 |
|
$ |
3,816 |
|
|
$ |
3,706 |
|
Reconciliation of Current Outlook for
Adjusted EBITDA:
|
Full Year 2022 |
(in millions) |
Outlook(f) |
Income (loss) from continuing operations |
$1,634 |
to |
$1,714 |
Adjustments to increase (decrease) Income (loss) from continuing
operations: |
|
|
|
Asset write-down charges |
$15 |
to |
$25 |
Acquisition and integration costs |
$0 |
to |
$8 |
Depreciation, amortization and accretion |
$1,650 |
to |
$1,745 |
Amortization of prepaid lease purchase price adjustments |
$16 |
to |
$18 |
Interest expense and amortization of deferred financing
costs(e) |
$615 |
to |
$660 |
(Gains) losses on retirement of long-term obligations |
$0 |
to |
$100 |
Interest income |
$(1) |
to |
$0 |
Other (income) expense |
$0 |
to |
$5 |
(Benefit) provision for income taxes |
$25 |
to |
$33 |
Stock-based compensation expense |
$135 |
to |
$139 |
Adjusted EBITDA(c)(d) |
$4,249 |
to |
$4,294 |
- Does not reflect the impact related to the ATO Settlement (as
defined in the April 8-K), which is attributable to discontinued
operations as discussed in the April 8-K.
- See reconciliation of "Components of Historical Interest
Expense and Amortization of Deferred Financing Costs" for a
discussion of non-cash interest expense.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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.
- See reconciliation of "Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing Costs" for
a discussion of non-cash interest expense.
- As issued on January 26, 2022.
Reconciliation of Historical FFO and
AFFO:
|
For the Three Months Ended |
|
For the Twelve Months Ended |
(in millions, except per share amounts) |
December 31,2021 |
|
December 31,2020 |
|
December 31,2021 |
|
December 31,2020 |
Income (loss) from continuing operations |
$ |
353 |
|
|
$ |
508 |
|
|
$ |
1,158 |
|
(a) |
$ |
1,056 |
|
Real estate related depreciation, amortization and accretion |
|
402 |
|
|
|
388 |
|
|
|
1,593 |
|
|
|
1,555 |
|
Asset write-down charges |
|
12 |
|
|
|
64 |
|
|
|
21 |
|
|
|
74 |
|
Dividends/distributions on preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(85 |
) |
FFO(b)(c)(d)(e) |
$ |
767 |
|
|
$ |
960 |
|
|
$ |
2,772 |
|
|
$ |
2,600 |
|
Weighted-average common shares outstanding—diluted |
|
434 |
|
|
|
433 |
|
|
|
434 |
|
|
|
425 |
|
FFO per share(b)(c)(d)(e) |
$ |
1.77 |
|
|
$ |
2.22 |
|
|
$ |
6.39 |
|
|
$ |
6.12 |
|
|
|
|
|
|
|
|
|
FFO (from above) |
$ |
767 |
|
|
$ |
960 |
|
|
$ |
2,772 |
|
|
$ |
2,600 |
|
Adjustments to increase (decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
|
(38 |
) |
|
|
5 |
|
|
|
(111 |
) |
|
|
(22 |
) |
Straight-lined expense |
|
18 |
|
|
|
22 |
|
|
|
76 |
|
|
|
83 |
|
Stock-based compensation expense |
|
31 |
|
|
|
28 |
|
|
|
131 |
|
|
|
133 |
|
Non-cash portion of tax provision |
|
(1 |
) |
|
|
(1 |
) |
|
|
1 |
|
|
|
1 |
|
Non-real estate related depreciation, amortization and
accretion |
|
13 |
|
|
|
13 |
|
|
|
51 |
|
|
|
53 |
|
Amortization of non-cash interest expense |
|
4 |
|
|
|
1 |
|
|
|
13 |
|
|
|
6 |
|
Other (income) expense |
|
4 |
|
|
|
— |
|
|
|
21 |
|
|
|
5 |
|
(Gains) losses on retirement of long-term obligations |
|
— |
|
|
|
— |
|
|
|
145 |
|
|
|
95 |
|
Acquisition and integration costs |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
10 |
|
Sustaining capital expenditures |
|
(30 |
) |
|
|
(21 |
) |
|
|
(87 |
) |
|
|
(86 |
) |
AFFO(b)(c)(d)(e) |
$ |
768 |
|
|
$ |
1,008 |
|
|
$ |
3,013 |
|
|
$ |
2,878 |
|
Weighted-average common shares outstanding—diluted |
|
434 |
|
|
|
433 |
|
|
|
434 |
|
|
|
425 |
|
AFFO per share(b)(c)(d)(e) |
$ |
1.77 |
|
|
$ |
2.33 |
|
|
$ |
6.95 |
|
|
$ |
6.78 |
|
- Does not reflect the impact related to the ATO Settlement (as
defined in the April 8-K), which is attributable to discontinued
operations as discussed in the April 8-K.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for a discussion of our definitions of FFO 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 Comparative Purposes -
Reconciliation of Previous Outlook for FFO and AFFO:
|
Previously Issued |
|
Previously Issued |
|
Full Year 2021 |
|
Full Year 2022 |
(in millions, except per share amounts) |
Outlook(a) |
|
Outlook(a) |
Income (loss) from continuing operations |
$1,074 |
to |
$1,154(b) |
|
$1,384 |
to |
$1,464 |
Real estate related depreciation, amortization and accretion |
$1,569 |
to |
$1,649 |
|
$1,607 |
to |
$1,687 |
Asset write-down charges |
$15 |
to |
$25 |
|
$15 |
to |
$25 |
FFO(c)(d)(e) |
$2,720 |
to |
$2,765 |
|
$3,068 |
to |
$3,113 |
Weighted-average common shares outstanding—diluted(f) |
|
434 |
|
|
435 |
FFO per share(c)(d)(e)(f) |
$6.27 |
to |
$6.37 |
|
$7.06 |
to |
$7.16 |
|
|
|
|
|
|
|
|
FFO (from above) |
$2,720 |
to |
$2,765 |
|
$3,068 |
to |
$3,113 |
Adjustments to increase (decrease) FFO: |
|
|
|
|
|
|
|
Straight-lined revenue |
$(117) |
to |
$(97) |
|
$(129) |
to |
$(109) |
Straight-lined expense |
$63 |
to |
$83 |
|
$56 |
to |
$76 |
Stock-based compensation expense |
$133 |
to |
$143 |
|
$135 |
to |
$139 |
Non-cash portion of tax provision |
$(7) |
to |
$8 |
|
$0 |
to |
$15 |
Non-real estate related depreciation, amortization and
accretion |
$46 |
to |
$61 |
|
$43 |
to |
$58 |
Amortization of non-cash interest expense |
$4 |
to |
$14 |
|
$5 |
to |
$15 |
Other (income) expense |
$1 |
to |
$12 |
|
$0 |
to |
$5 |
(Gains) losses on retirement of long-term obligations |
$145 |
to |
$145 |
|
$0 |
to |
$100 |
Acquisition and integration costs |
$0 |
to |
$8 |
|
$0 |
to |
$8 |
Sustaining capital expenditures |
$(104) |
to |
$(94) |
|
$(113) |
to |
$(93) |
AFFO(c)(d)(e) |
$2,943 |
to |
$2,988 |
|
$3,178 |
to |
$3,223 |
Weighted-average common shares outstanding—diluted(f) |
|
434 |
|
|
435 |
AFFO per share(c)(d)(e)(f) |
$6.78 |
to |
$6.89 |
|
$7.31 |
to |
$7.41 |
- As issued on October 20, 2021.
- Does not reflect the impact related to the ATO Settlement (as
defined in the April 8-K), which is attributable to discontinued
operations as discussed in the April 8-K.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for a discussion of our definitions of FFO and AFFO,
including per share amounts.
- 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 2022 Outlook is based on the diluted
common shares outstanding as of December 31, 2021.
Reconciliation of Current Outlook for
FFO and AFFO:
|
Full Year 2022 |
(in millions, except per share amounts) |
Outlook(e) |
Income (loss) from continuing operations |
$1,634 |
to |
$1,714 |
Real estate related depreciation, amortization and accretion |
$1,607 |
to |
$1,687 |
Asset write-down charges |
$15 |
to |
$25 |
FFO(a)(b)(c) |
$3,318 |
to |
$3,363 |
Weighted-average common shares outstanding—diluted(d) |
|
435 |
FFO per
share(a)(b)(c)(d) |
$7.63 |
to |
$7.73 |
|
|
|
|
FFO (from above) |
$3,318 |
to |
$3,363 |
Adjustments to increase (decrease) FFO: |
|
|
|
Straight-lined revenue |
$(379) |
to |
$(359) |
Straight-lined expense |
$56 |
to |
$76 |
Stock-based compensation expense |
$135 |
to |
$139 |
Non-cash portion of tax provision |
$0 |
to |
$15 |
Non-real estate related depreciation, amortization and
accretion |
$43 |
to |
$58 |
Amortization of non-cash interest expense |
$5 |
to |
$15 |
Other (income) expense |
$0 |
to |
$5 |
(Gains) losses on retirement of long-term obligations |
$0 |
to |
$100 |
Acquisition and integration costs |
$0 |
to |
$8 |
Sustaining capital expenditures |
$(113) |
to |
$(93) |
AFFO(a)(b)(c) |
$3,178 |
to |
$3,223 |
Weighted-average common shares outstanding—diluted(d) |
|
435 |
AFFO per
share(a)(b)(c)(d) |
$7.31 |
to |
$7.41 |
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for a discussion of our definitions of FFO and AFFO,
including per share amounts.
- 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 2022 Outlook is based on the diluted
common shares outstanding as of December 31, 2021.
- As issued on January 26, 2022.
For Comparative Purposes - Reconciliation
of Previous Outlook for Adjusted EBITDA:
|
Previously Issued |
|
Previously Issued |
|
Full Year 2021 |
|
Full Year 2022 |
(in millions) |
Outlook(a) |
|
Outlook(a) |
Income (loss) from continuing operations |
$1,074 |
to |
$1,154(b) |
|
$1,384 |
to |
$1,464 |
Adjustments to increase
(decrease) Income (loss) from continuing operations: |
|
|
|
|
|
|
|
Asset write-down charges |
$15 |
to |
$25 |
|
$15 |
to |
$25 |
Acquisition and integration costs |
$0 |
to |
$8 |
|
$0 |
to |
$8 |
Depreciation, amortization and accretion |
$1,615 |
to |
$1,710 |
|
$1,650 |
to |
$1,745 |
Amortization of prepaid lease purchase price adjustments |
$17 |
to |
$19 |
|
$16 |
to |
$18 |
Interest expense and amortization of deferred financing costs |
$633 |
to |
$678 |
|
$615 |
to |
$660 |
(Gains) losses on retirement of long-term obligations |
$145 |
to |
$145 |
|
$0 |
to |
$100 |
Interest income |
$(3) |
to |
$0 |
|
$(1) |
to |
$0 |
Other (income) expense |
$1 |
to |
$12 |
|
$0 |
to |
$5 |
(Benefit) provision for income taxes |
$18 |
to |
$26 |
|
$25 |
to |
$33 |
Stock-based compensation expense |
$133 |
to |
$143 |
|
$135 |
to |
$139 |
Adjusted EBITDA(c)(d) |
$3,764 |
to |
$3,809 |
|
$3,999 |
to |
$4,044 |
- As issued on October 20, 2021.
- Does not reflect the impact related to the ATO Settlement (as
defined in the April 8-K), which is attributable to discontinued
operations as discussed in the April 8-K.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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 Results Adjusted for
Nontypical Items to As Reported Results:
|
Full Year 2021 |
|
Full Year 2020 |
|
Full Year 2021 Growth Rates |
(dollars in millions, except per share amounts) |
As Reported |
|
As Reported |
|
Less: ImpactfromNontypicalItems |
|
Exclusive ofImpact fromNontypicalItems |
|
As Reported |
|
Less: ImpactfromNontypicalItems |
|
Exclusive ofImpact fromNontypicalItems |
Site rental revenues |
$ |
5,719 |
|
|
$ |
5,320 |
|
$ |
— |
|
|
|
$ |
5,320 |
|
8 |
% |
|
— |
% |
|
|
8 |
% |
Income (loss) from continuing operations(a) |
|
1,158 |
(c) |
|
|
1,056 |
|
|
(223 |
) |
(d) |
|
|
833 |
|
10 |
% |
|
29 |
% |
(d) |
|
39 |
% |
Income (loss) from continuing operations per
share—diluted(a)(b) |
|
2.67 |
(c) |
|
|
2.35 |
|
|
(0.52 |
) |
(d) |
|
|
1.83 |
|
14 |
% |
|
32 |
% |
(d) |
|
46 |
% |
Adjusted EBITDA(a) |
|
3,816 |
|
|
|
3,706 |
|
|
(286 |
) |
(e) |
|
|
3,420 |
|
3 |
% |
|
9 |
% |
(e) |
|
12 |
% |
AFFO(a)(b) |
|
3,013 |
|
|
|
2,878 |
|
|
(286 |
) |
(e) |
|
|
2,592 |
|
5 |
% |
|
11 |
% |
(e) |
|
16 |
% |
AFFO per share(a)(b) |
$ |
6.95 |
|
|
$ |
6.78 |
|
$ |
(0.68 |
) |
(e) |
|
$ |
6.10 |
|
3 |
% |
|
11 |
% |
(e) |
|
14 |
% |
- See reconciliations herein for further information and
reconciliation of non-GAAP financial measures to Income (loss) from
continuing operations, as computed in accordance with GAAP.
- Attributable to CCIC common stockholders.
- Does not reflect the impact related to the ATO Settlement (as
defined in the April 8-K), which is attributable to discontinued
operations as discussed in the April 8-K.
- Impact from Nontypical Items on Income (loss) from continuing
operations and Income (loss) from continuing operations per
share—diluted included in the 2020 fourth quarter operating results
is comprised of other operating income of $362 million, offset by
incremental operating expenses of $76 million and associated asset
write-downs of $63 million.
- Impact from Nontypical Items on Adjusted EBITDA, AFFO and AFFO
per share included in the 2020 fourth quarter operating results is
comprised of other operating income of $362 million, offset by
incremental operating expenses of $76 million.
Components of Changes in Site Rental
Revenues for the Quarters ended December 31, 2021 and
2020:
|
Three Months Ended December 31, |
(dollars in millions) |
|
2021 |
|
|
|
2020 |
|
Components of changes in site rental revenues:(a) |
|
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$ |
1,357 |
|
|
$ |
1,282 |
|
|
|
|
|
New leasing activity(b)(c) |
|
98 |
|
|
|
90 |
|
Escalators |
|
24 |
|
|
|
23 |
|
Non-renewals |
|
(43 |
) |
|
|
(39 |
) |
Organic Contribution to Site Rental Revenues(d) |
|
79 |
|
|
|
74 |
|
Impact from straight-lined revenues associated with fixed
escalators |
|
38 |
|
|
|
(5 |
) |
Acquisitions(e) |
|
— |
|
|
|
1 |
|
Other |
|
— |
|
|
|
— |
|
Total GAAP site rental revenues |
$ |
1,474 |
|
|
$ |
1,352 |
|
|
|
|
|
Year-over-year changes in revenue: |
|
|
|
Reported GAAP site rental revenues |
|
9.0 |
% |
|
|
Organic Contribution to Site Rental Revenues(d)(f) |
|
5.8 |
% |
|
|
Components of the Changes in Site Rental
Revenues for Full Year 2021 and 2022 Outlook:
(dollars in millions) |
Full Year 2021 |
|
Current Full Year2022 Outlook(g) |
Components of changes in site rental revenues:(a) |
|
|
|
Prior year site rental revenues exclusive of straight-lined
revenues associated with fixed escalators(b)(c) |
$5,298 |
|
$5,608 |
|
|
|
|
New leasing activity(b)(c) |
384 |
|
$325 |
to |
$355 |
Escalators |
93 |
|
$95 |
to |
$105 |
Non-renewals |
(170) |
|
$(195) |
to |
$(175) |
Organic Contribution to Site Rental Revenues(d) |
307 |
|
$235 |
to |
$275 |
Impact from full year straight-lined revenues associated with fixed
escalators |
111 |
|
$359 |
to |
$379 |
Acquisitions(e) |
3 |
|
— |
Other |
— |
|
— |
Total GAAP site rental revenues |
$5,719 |
|
$6,202 |
to |
$6,247 |
|
|
|
|
Year-over-year changes in revenue: |
|
|
|
Reported GAAP site rental revenues |
7.5% |
|
8.8%(h) |
Organic Contribution to Site Rental Revenues(d)(f) |
5.8% |
|
4.5%(h) |
- 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.
- As issued on January 26, 2022.
- Calculated based on midpoint of full year 2022 Outlook.
Components of Historical Interest
Expense and Amortization of Deferred Financing Costs:
|
For the Three Months Ended |
(in millions) |
December 31, 2021 |
|
December 31, 2020 |
Interest expense on debt obligations |
$ |
160 |
|
|
$ |
166 |
|
Amortization of deferred financing costs and adjustments on
long-term debt, net |
|
6 |
|
|
|
6 |
|
Capitalized interest |
|
(2 |
) |
|
|
(5 |
) |
Interest expense and amortization of deferred financing
costs |
$ |
164 |
|
|
$ |
167 |
|
Components of Current Outlook for
Interest Expense and Amortization of Deferred Financing
Costs:
|
Full Year 2022 |
(in millions) |
Outlook(a) |
Interest expense on debt obligations |
$617 |
to |
$637 |
Amortization of deferred financing costs and adjustments on
long-term debt, net |
$25 |
to |
$30 |
Capitalized interest |
$(20) |
to |
$(15) |
Interest expense and amortization of deferred financing
costs |
$615 |
to |
$660 |
- As issued on January 26, 2022.
Debt Balances and Maturity Dates as of
December 31, 2021:
(in millions) |
Face Value |
|
Final Maturity |
Cash, cash equivalents and restricted cash |
$ |
466 |
|
|
|
|
|
|
3.849% Secured Notes |
|
1,000 |
|
Apr. 2023 |
Secured Notes, Series 2009-1, Class A-2(a) |
|
54 |
|
Aug. 2029 |
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 |
|
242 |
|
Various |
Total secured debt |
$ |
2,996 |
|
|
2016 Revolver(c) |
|
665 |
|
June 2026 |
2016 Term Loan A |
|
1,223 |
|
June 2026 |
Commercial Paper Notes(d) |
|
265 |
|
Jan. 2022 |
3.150% Senior Notes |
|
750 |
|
July 2023 |
3.200% Senior Notes |
|
750 |
|
Sept. 2024 |
1.350% Senior Notes |
|
500 |
|
July 2025 |
4.450% Senior Notes |
|
900 |
|
Feb. 2026 |
3.700% Senior Notes |
|
750 |
|
June 2026 |
1.050% Senior Notes |
|
1,000 |
|
July 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 |
3.300% Senior Notes |
|
750 |
|
July 2030 |
2.250% Senior Notes |
|
1,100 |
|
Jan. 2031 |
2.100% Senior Notes |
|
1,000 |
|
Apr. 2031 |
2.500% Senior Notes |
|
750 |
|
July 2031 |
2.900% Senior Notes |
|
1,250 |
|
Apr. 2041 |
4.750% Senior Notes |
|
350 |
|
May 2047 |
5.200% Senior Notes |
|
400 |
|
Feb. 2049 |
4.000% Senior Notes |
|
350 |
|
Nov. 2049 |
4.150% Senior Notes |
|
500 |
|
July 2050 |
3.250% Senior Notes |
|
900 |
|
Jan. 2051 |
Total unsecured debt |
$ |
17,803 |
|
|
Total net debt |
$ |
20,333 |
|
|
- The Senior Secured Notes, 2009-1, Class A-2 principal amortizes
over a period ending in August 2029.
- If the respective series of such debt is not paid in full on or
prior to an applicable anticipated repayment date, then the Excess
Cash Flow (as defined in the indenture) of the issuers of such
notes will be used to repay principal of the applicable series, and
additional interest (of an additional approximately 5% per annum)
will accrue on the respective series. The Senior Secured Tower
Revenue Notes 2015-2 have an anticipated repayment date in 2025.
The Senior Secured Tower Revenue Notes, 2018-1 and 2018-2 have
anticipated repayment dates in 2023 and 2028, respectively. Notes
are prepayable at par if voluntarily repaid within certain
repayment windows (typically twelve to eighteen months or less
prior to maturity); earlier prepayment may require additional
consideration.
- As of December 31, 2021, the undrawn availability under
the $5.0 billion 2016 Revolver was $4.3 billion.
- As of December 31, 2021, the Company had $735 million
available for issuance under the $1.0 billion unsecured commercial
paper program ("CP Program"). 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 Calculation:
(dollars in millions) |
For the Three MonthsEnded December 31, 2021 |
Total face value of debt |
$ |
20,799 |
|
Less: Ending cash, cash equivalents and restricted cash |
|
466 |
|
Total Net Debt |
$ |
20,333 |
|
|
|
Adjusted EBITDA for the three months ended December 31, 2021 |
$ |
984 |
|
Last quarter annualized Adjusted EBITDA |
|
3,936 |
|
Net Debt to Last Quarter Annualized Adjusted
EBITDA |
|
5.2 |
x |
Components of Capital
Expenditures:(a)
|
For the Three Months Ended |
(in millions) |
December 31, 2021 |
|
December 31, 2020 |
|
Towers |
Fiber |
Other |
Total |
|
Towers |
Fiber |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases of land interests |
$ |
19 |
$ |
2 |
$ |
— |
$ |
21 |
|
$ |
23 |
$ |
— |
$ |
— |
$ |
23 |
Communications infrastructure improvements and other capital
projects |
|
34 |
|
239 |
|
13 |
|
286 |
|
|
38 |
|
292 |
|
12 |
|
342 |
Sustaining |
|
8 |
|
14 |
|
8 |
|
30 |
|
|
3 |
|
14 |
|
4 |
|
21 |
Total |
$ |
61 |
$ |
255 |
$ |
21 |
$ |
337 |
|
$ |
64 |
$ |
306 |
$ |
16 |
$ |
386 |
|
For the Twelve Months Ended |
(in millions) |
December 31, 2021 |
|
December 31, 2020 |
|
Towers |
Fiber |
Other |
Total |
|
Towers |
Fiber |
Other |
Total |
Discretionary: |
|
|
|
|
|
|
|
|
|
Purchases of land interests |
$ |
64 |
$ |
2 |
$ |
— |
$ |
66 |
|
$ |
64 |
$ |
— |
$ |
— |
$ |
64 |
Communications infrastructure improvements and other capital
projects |
|
138 |
|
905 |
|
33 |
|
1,076 |
|
|
257 |
|
1,179 |
|
38 |
|
1,474 |
Sustaining |
|
19 |
|
49 |
|
19 |
|
87 |
|
|
14 |
|
53 |
|
19 |
|
86 |
Total |
$ |
221 |
$ |
956 |
$ |
52 |
$ |
1,229 |
|
$ |
335 |
$ |
1,232 |
$ |
57 |
$ |
1,624 |
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" for further discussion of our components of capital
expenditures.
Cautionary Language Regarding
Forward-Looking Statements
This news release contains forward-looking
statements and information that are based on our management's
current expectations as of the date of this news release.
Statements that are not historical facts are hereby identified as
forward-looking statements. In addition, words such as "estimate,"
"see," "anticipate," "project," "plan," "intend," "believe,"
"expect," "likely," "predicted," "gives confidence," "positioned,"
"continue," "target," "focus," and any variations of these words
and similar expressions are intended to identify forward-looking
statements. Such statements include our full year 2022 Outlook and
plans, projections, and estimates regarding (1) potential benefits,
growth, returns, capabilities, opportunities and shareholder value
which may be derived from our business, strategy, risk profile,
assets and customer solutions, investments, acquisitions and
dividends, (2) our business, strategy, strategic position, business
model and capabilities and the strength thereof, (3) 5G deployment
in the United States and our customers' strategy and plans with
respect thereto and demand for our assets and solutions created by
such deployment and our customers' strategy and plans, (4) our
long- and short-term prospects and the trends, events and industry
activities impacting our business, (5) opportunities we see to
deliver value to our shareholders, (6) our dividends (including
timing of payment thereof), dividend targets, dividend payout
ratio, and our long- and short-term dividend (including on a per
share basis) growth rate, and its driving factors, (7) debt
maturities, (8) cash flows, including growth thereof,
(9) leasing environment (including with respect to tower
application volumes) and the leasing activity we see in our
business, and benefits and opportunities created thereby, (10)
tenant non-renewals, including the impact and timing thereof, (11)
capital expenditures, including sustaining and discretionary
capital expenditures, the timing and funding thereof and any
benefits that may result therefrom, (12) revenues and growth
thereof (including with respect to our Towers business) and
benefits derived therefrom, (13) the recurrence and impact of
Nontypical Items and other nontypical items, (14) Income (loss)
from continuing operations (including on a per share basis and as
adjusted for Nontypical Items), (15) Adjusted EBITDA
(including as adjusted for Nontypical Items), including components
thereof and growth thereof, (16) costs and expenses, including
interest expense and amortization of deferred financing costs, (17)
FFO (including on a per share basis) and growth thereof, (18) AFFO
(including on a per share basis and as adjusted for Nontypical
Items) and its components and growth thereof and corresponding
driving factors, (19) Organic Contribution to Site Rental
Revenues and its components, including growth thereof and
contributions therefrom, (20) our weighted-average common shares
outstanding (including on a diluted basis) and growth thereof, (21)
site rental revenues, and the growth thereof, (22) annual small
cell deployment and the impacts therefrom, including any increase
in run-rate, and its driving factors, (23) Fiber business growth,
(24) prepaid rent, including the additions and the amortization and
growth thereof, (25) the strength of the U.S. market for
communications infrastructure ownership, (26) impact from T-Mobile
and Sprint network consolidation, (27) strength of our balance
sheet and our investment grade status and (28) the utility of
certain financial measures, including non-GAAP financial measures.
All future dividends are subject to declaration by our board of
directors.
Such forward-looking statements are subject to
certain risks, uncertainties and assumptions, including 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, efficiently and
safely 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 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 rights to land 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.
- 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.
- 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.
- The impact of COVID-19 and related
risks could materially affect our financial position, results of
operations and cash flows.
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 31,2021 |
|
December 31,2020 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
292 |
|
|
$ |
232 |
|
Restricted cash |
|
169 |
|
|
|
144 |
|
Receivables, net |
|
543 |
|
|
|
431 |
|
Prepaid expenses |
|
105 |
|
|
|
95 |
|
Other current assets |
|
145 |
|
|
|
202 |
|
Total current assets |
|
1,254 |
|
|
|
1,104 |
|
Deferred site rental receivables |
|
1,588 |
|
|
|
1,408 |
|
Property and equipment, net |
|
15,269 |
|
|
|
15,162 |
|
Operating lease right-of-use assets |
|
6,682 |
|
|
|
6,464 |
|
Goodwill |
|
10,078 |
|
|
|
10,078 |
|
Other intangible assets, net |
|
4,046 |
|
|
|
4,433 |
|
Other assets, net |
|
123 |
|
|
|
119 |
|
Total assets |
$ |
39,040 |
|
|
$ |
38,768 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
246 |
|
|
$ |
230 |
|
Accrued interest |
|
182 |
|
|
|
199 |
|
Deferred revenues |
|
776 |
|
|
|
704 |
|
Other accrued liabilities |
|
401 |
|
|
|
378 |
|
Current maturities of debt and other obligations |
|
72 |
|
|
|
129 |
|
Current portion of operating lease liabilities |
|
349 |
|
|
|
329 |
|
Total current liabilities |
|
2,026 |
|
|
|
1,969 |
|
Debt and other long-term obligations |
|
20,557 |
|
|
|
19,151 |
|
Operating lease liabilities |
|
6,031 |
|
|
|
5,808 |
|
Other long-term liabilities |
|
2,168 |
|
|
|
2,379 |
|
Total liabilities |
|
30,782 |
|
|
|
29,307 |
|
Commitments and contingencies |
|
|
|
CCIC stockholders' equity: |
|
|
|
Common stock, $0.01 par value; 600 shares authorized; shares issued
and outstanding: December 31, 2021—432 and December 31,
2020—431 |
|
4 |
|
|
|
4 |
|
Additional paid-in capital |
|
18,011 |
|
|
|
17,933 |
|
Accumulated other comprehensive income (loss) |
|
(4 |
) |
|
|
(4 |
) |
Dividends/distributions in excess of earnings |
|
(9,753 |
) |
|
|
(8,472 |
) |
Total equity |
|
8,258 |
|
|
|
9,461 |
|
Total liabilities and equity |
$ |
39,040 |
|
|
$ |
38,768 |
|
|
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, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net revenues: |
|
|
|
|
|
|
|
Site rental |
$ |
1,474 |
|
|
$ |
1,352 |
|
|
$ |
5,719 |
|
|
$ |
5,320 |
|
Services and other |
|
180 |
|
|
|
141 |
|
|
|
621 |
|
|
|
520 |
|
Net revenues |
|
1,654 |
|
|
|
1,493 |
|
|
|
6,340 |
|
|
|
5,840 |
|
Operating expenses: |
|
|
|
|
|
|
|
Costs of operations:(a) |
|
|
|
|
|
|
|
Site rental |
|
387 |
|
|
|
401 |
|
|
|
1,554 |
|
|
|
1,521 |
|
Services and other |
|
138 |
|
|
|
123 |
|
|
|
439 |
|
|
|
448 |
|
Selling, general and administrative |
|
180 |
|
|
|
185 |
|
|
|
680 |
|
|
|
678 |
|
Asset write-down charges |
|
12 |
|
|
|
64 |
|
|
|
21 |
|
|
|
74 |
|
Acquisition and integration costs |
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
10 |
|
Depreciation, amortization and accretion |
|
415 |
|
|
|
401 |
|
|
|
1,644 |
|
|
|
1,608 |
|
Total operating expenses |
|
1,132 |
|
|
|
1,175 |
|
|
|
4,339 |
|
|
|
4,339 |
|
Other operating (income) expense |
|
— |
|
|
|
(362 |
) |
|
|
— |
|
|
|
(362 |
) |
Operating income (loss) |
|
522 |
|
|
|
680 |
|
|
|
2,001 |
|
|
|
1,863 |
|
Interest expense and amortization of deferred financing costs |
|
(164 |
) |
|
|
(167 |
) |
|
|
(657 |
) |
|
|
(689 |
) |
Gains (losses) on retirement of long-term obligations |
|
— |
|
|
|
— |
|
|
|
(145 |
) |
|
|
(95 |
) |
Interest income |
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
2 |
|
Other income (expense) |
|
(4 |
) |
|
|
— |
|
|
|
(21 |
) |
|
|
(5 |
) |
Income (loss) before income taxes |
|
354 |
|
|
|
513 |
|
|
|
1,179 |
|
|
|
1,076 |
|
Benefit (provision) for income taxes |
|
(1 |
) |
|
|
(5 |
) |
|
|
(21 |
) |
|
|
(20 |
) |
Income (loss) from continuing operations |
|
353 |
|
|
|
508 |
|
|
|
1,158 |
|
|
|
1,056 |
|
Discontinued operations: |
|
|
|
|
|
|
|
Net gain (loss) from disposal of discontinued operations, net of
tax |
|
— |
|
|
|
— |
|
|
|
(62 |
) |
|
|
— |
|
Income (loss) from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
(62 |
) |
|
|
— |
|
Net income (loss) |
|
353 |
|
|
|
508 |
|
|
|
1,096 |
|
|
|
1,056 |
|
Dividends/distributions on preferred stock |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(57 |
) |
Net income (loss) attributable to CCIC common stockholders |
$ |
353 |
|
|
$ |
508 |
|
|
$ |
1,096 |
|
|
$ |
999 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to CCIC common stockholders, per
common share: |
|
|
|
|
|
|
|
Income (loss) from continuing operations, basic |
$ |
0.82 |
|
|
$ |
1.17 |
|
|
$ |
2.68 |
|
|
$ |
2.36 |
|
Income (loss) from discontinued operations, basic |
|
— |
|
|
|
— |
|
|
|
(0.14 |
) |
|
|
— |
|
Net income (loss) attributable to CCIC common stockholders,
basic |
$ |
0.82 |
|
|
$ |
1.17 |
|
|
$ |
2.54 |
|
|
$ |
2.36 |
|
Income (loss) from continuing operations, diluted |
$ |
0.81 |
|
|
$ |
1.17 |
|
|
$ |
2.67 |
|
|
$ |
2.35 |
|
Income (loss) from discontinued operations, diluted |
|
— |
|
|
|
— |
|
|
|
(0.14 |
) |
|
|
— |
|
Net income (loss) attributable to CCIC common stockholders,
diluted |
$ |
0.81 |
|
|
$ |
1.17 |
|
|
$ |
2.53 |
|
|
$ |
2.35 |
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
432 |
|
|
|
431 |
|
|
|
432 |
|
|
|
423 |
|
Diluted |
|
434 |
|
|
|
433 |
|
|
|
434 |
|
|
|
425 |
|
- Exclusive of depreciation, amortization and accretion shown
separately.
|
CROWN CASTLE INTERNATIONAL CORP.CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)(In
millions of dollars) |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
Cash flows from operating activities: |
|
|
|
Income (loss) from continuing operations |
$ |
1,158 |
|
|
$ |
1,056 |
|
Adjustments to reconcile Income (loss) from continuing operations
to net cash provided by (used for) operating activities: |
|
|
|
Depreciation, amortization and accretion |
|
1,644 |
|
|
|
1,608 |
|
(Gains) losses on retirement of long-term obligations |
|
145 |
|
|
|
95 |
|
Amortization of deferred financing costs and other non-cash
interest, net |
|
13 |
|
|
|
6 |
|
Stock-based compensation expense |
|
129 |
|
|
|
138 |
|
Asset write-down charges |
|
21 |
|
|
|
74 |
|
Deferred income tax (benefit) provision |
|
4 |
|
|
|
3 |
|
Other non-cash adjustments, net |
|
21 |
|
|
|
5 |
|
Changes in assets and liabilities, excluding the effects of
acquisitions: |
|
|
|
Increase (decrease) in liabilities |
|
(120 |
) |
|
|
(111 |
) |
Decrease (increase) in assets |
|
(226 |
) |
|
|
181 |
|
Net cash provided by (used for) operating activities |
|
2,789 |
|
|
|
3,055 |
|
Cash flows from investing activities: |
|
|
|
Capital expenditures |
|
(1,229 |
) |
|
|
(1,624 |
) |
Payments for acquisitions, net of cash acquired |
|
(111 |
) |
|
|
(107 |
) |
Other investing activities, net |
|
8 |
|
|
|
(10 |
) |
Net cash provided by (used for) investing activities |
|
(1,332 |
) |
|
|
(1,741 |
) |
Cash flows from financing activities: |
|
|
|
Proceeds from issuance of long-term debt |
|
3,985 |
|
|
|
3,733 |
|
Principal payments on debt and other long-term obligations |
|
(1,076 |
) |
|
|
(105 |
) |
Purchases and redemptions of long-term debt |
|
(2,089 |
) |
|
|
(2,490 |
) |
Borrowings under revolving credit facility |
|
1,245 |
|
|
|
2,430 |
|
Payments under revolving credit facility |
|
(870 |
) |
|
|
(2,665 |
) |
Net borrowings (repayments) under commercial paper program |
|
(20 |
) |
|
|
130 |
|
Payments for financing costs |
|
(42 |
) |
|
|
(38 |
) |
Purchases of common stock |
|
(70 |
) |
|
|
(76 |
) |
Dividends/distributions paid on common stock |
|
(2,373 |
) |
|
|
(2,105 |
) |
Dividends/distributions paid on preferred stock |
|
— |
|
|
|
(85 |
) |
Net cash provided by (used for) financing activities |
|
(1,310 |
) |
|
|
(1,271 |
) |
Net increase (decrease) in cash, cash equivalents, and
restricted cash - continuing operations |
|
147 |
|
|
|
43 |
|
Discontinued operations: |
|
|
|
Net cash provided by (used for) operating activities |
|
(62 |
) |
|
|
— |
|
Net increase (decrease) in cash, cash equivalents and
restricted cash - discontinued operations |
|
(62 |
) |
|
|
— |
|
Effect of exchange rate changes on cash |
|
— |
|
|
|
— |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
|
381 |
|
|
|
338 |
|
Cash, cash equivalents, and restricted cash at end of
period |
$ |
466 |
|
|
$ |
381 |
|
Supplemental disclosure of cash flow
information: |
|
|
|
Interest paid |
|
661 |
|
|
|
653 |
|
Income taxes paid |
|
20 |
|
|
|
19 |
|
|
CROWN CASTLE INTERNATIONAL CORP.SEGMENT
OPERATING RESULTS (UNAUDITED)(In millions of dollars) |
SEGMENT OPERATING RESULTS |
|
Three Months Ended December 31, 2021 |
|
Three Months Ended December 31, 2020 |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
Segment site rental revenues |
$ |
985 |
|
$ |
489 |
|
|
|
$ |
1,474 |
|
$ |
884 |
|
$ |
468 |
|
|
|
|
$ |
1,352 |
|
Segment services and other revenues |
|
174 |
|
|
6 |
|
|
|
|
180 |
|
|
133 |
|
|
8 |
|
|
|
|
|
141 |
|
Segment revenues |
|
1,159 |
|
|
495 |
|
|
|
|
1,654 |
|
|
1,017 |
|
|
476 |
|
|
|
|
|
1,493 |
|
Segment site rental costs of operations |
|
231 |
|
|
148 |
|
|
|
|
379 |
|
|
218 |
|
|
173 |
|
|
|
|
|
391 |
|
Segment services and other costs of operations |
|
130 |
|
|
6 |
|
|
|
|
136 |
|
|
117 |
|
|
5 |
|
|
|
|
|
122 |
|
Segment costs of operations(a)(b) |
|
361 |
|
|
154 |
|
|
|
|
515 |
|
|
335 |
|
|
178 |
|
|
|
|
|
513 |
|
Segment site rental gross margin(c) |
|
754 |
|
|
341 |
|
|
|
|
1,095 |
|
|
666 |
|
|
295 |
|
|
|
|
|
961 |
|
Segment services and other gross margin(c) |
|
44 |
|
|
— |
|
|
|
|
44 |
|
|
16 |
|
|
3 |
|
|
|
|
|
19 |
|
Segment selling, general and administrative expenses(b) |
|
29 |
|
|
41 |
|
|
|
|
70 |
|
|
30 |
|
|
49 |
|
|
|
|
|
79 |
|
Segment other operating (income) expense |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
(362 |
) |
|
|
|
|
(362 |
) |
Segment operating
profit(c) |
|
769 |
|
|
300 |
|
|
|
|
1,069 |
|
|
652 |
|
|
611 |
|
|
|
|
|
1,263 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
85 |
|
|
85 |
|
|
|
|
|
$ |
84 |
|
|
84 |
|
Stock-based compensation expense |
|
|
|
|
|
31 |
|
|
31 |
|
|
|
|
|
|
28 |
|
|
28 |
|
Depreciation, amortization and
accretion |
|
|
|
|
|
415 |
|
|
415 |
|
|
|
|
|
|
401 |
|
|
401 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
|
164 |
|
|
164 |
|
|
|
|
|
|
167 |
|
|
167 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
|
20 |
|
|
20 |
|
|
|
|
|
|
70 |
|
|
70 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
354 |
|
|
|
|
|
|
|
$ |
513 |
|
FIBER SEGMENT SITE RENTAL REVENUES SUMMARY |
|
Three Months Ended December 31, |
|
|
2021 |
|
|
2020 |
|
Fiber Solutions |
|
Small Cells |
|
Total |
|
Fiber Solutions |
|
Small Cells |
|
Total |
Site rental revenues |
$ |
331 |
|
$ |
158 |
|
$ |
489 |
|
$ |
325 |
|
$ |
143 |
|
$ |
468 |
- Exclusive of depreciation, amortization and accretion shown
separately.
- Segment costs of operations excludes (1) stock-based
compensation expense of $6 million in each of the three months
ended December 31, 2021 and 2020 (2) prepaid lease purchase
price adjustments of $4 million and $5 million for the three months
ended December 31, 2021 and 2020, respectively. Selling,
general and administrative expenses exclude stock-based
compensation expense of $25 million and $22 million for the
three months ended December 31, 2021 and 2020,
respectively.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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, 2021 |
|
Twelve Months Ended December 31, 2020 |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
|
Towers |
|
Fiber |
|
Other |
|
ConsolidatedTotal |
Segment site rental revenues |
$ |
3,804 |
|
$ |
1,915 |
|
|
|
$ |
5,719 |
|
$ |
3,497 |
|
$ |
1,823 |
|
|
|
|
$ |
5,320 |
|
Segment services and other revenues |
|
601 |
|
|
20 |
|
|
|
|
621 |
|
|
500 |
|
|
20 |
|
|
|
|
|
520 |
|
Segment revenues |
|
4,405 |
|
|
1,935 |
|
|
|
|
6,340 |
|
|
3,997 |
|
|
1,843 |
|
|
|
|
|
5,840 |
|
Segment site rental costs of operations |
|
889 |
|
|
633 |
|
|
|
|
1,522 |
|
|
866 |
|
|
620 |
|
|
|
|
|
1,486 |
|
Segment services and other costs of operations |
|
414 |
|
|
17 |
|
|
|
|
431 |
|
|
429 |
|
|
12 |
|
|
|
|
|
441 |
|
Segment costs of operations(a)(b) |
|
1,303 |
|
|
650 |
|
|
|
|
1,953 |
|
|
1,295 |
|
|
632 |
|
|
|
|
|
1,927 |
|
Segment site rental gross margin(c) |
|
2,915 |
|
|
1,282 |
|
|
|
|
4,197 |
|
|
2,631 |
|
|
1,203 |
|
|
|
|
|
3,834 |
|
Segment services and other gross margin(c) |
|
187 |
|
|
3 |
|
|
|
|
190 |
|
|
71 |
|
|
8 |
|
|
|
|
|
79 |
|
Segment selling, general and administrative expenses(b) |
|
107 |
|
|
174 |
|
|
|
|
281 |
|
|
100 |
|
|
186 |
|
|
|
|
|
286 |
|
Segment other operating (income) expense |
|
— |
|
|
— |
|
|
|
|
— |
|
|
— |
|
|
(362 |
) |
|
|
|
|
(362 |
) |
Segment operating
profit(c) |
|
2,995 |
|
|
1,111 |
|
|
|
|
4,106 |
|
|
2,602 |
|
|
1,387 |
|
|
|
|
|
3,989 |
|
Other selling, general and
administrative expenses(b) |
|
|
|
|
$ |
290 |
|
|
290 |
|
|
|
|
|
$ |
283 |
|
|
283 |
|
Stock-based compensation expense |
|
|
|
|
|
131 |
|
|
131 |
|
|
|
|
|
|
133 |
|
|
133 |
|
Depreciation, amortization and
accretion |
|
|
|
|
|
1,644 |
|
|
1,644 |
|
|
|
|
|
|
1,608 |
|
|
1,608 |
|
Interest expense and
amortization of deferred financing costs |
|
|
|
|
|
657 |
|
|
657 |
|
|
|
|
|
|
689 |
|
|
689 |
|
Other (income) expenses to
reconcile to income (loss) before income taxes(d) |
|
|
|
|
|
205 |
|
|
205 |
|
|
|
|
|
|
200 |
|
|
200 |
|
Income (loss) before income
taxes |
|
|
|
|
|
|
$ |
1,179 |
|
|
|
|
|
|
|
$ |
1,076 |
|
FIBER SEGMENT SITE RENTAL REVENUES SUMMARY |
|
Twelve Months Ended December 31, |
|
|
2021 |
|
|
2020 |
|
Fiber Solutions |
|
Small Cells |
|
Total |
|
Fiber Solutions |
|
Small Cells |
|
Total |
Site rental revenues |
$ |
1,318 |
|
$ |
597 |
|
$ |
1,915 |
|
$ |
1,275 |
|
$ |
548 |
|
$ |
1,823 |
- Exclusive of depreciation, amortization and accretion shown
separately.
- Segment costs of operations excludes (1) stock-based
compensation expense of $22 million and $24 million for
the twelve months ended December 31, 2021 and 2020, respectively
and (2) prepaid lease purchase price adjustments of
$18 million in each of the twelve months ended December 31,
2021 and 2020. Selling, general and administrative expenses exclude
stock-based compensation expense of $109 million in each of
the twelve months ended December 31, 2021 and 2020.
- See "Non-GAAP Financial Measures, Segment Measures and Other
Calculations" 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.
Contacts: |
Dan Schlanger, CFO |
|
Ben Lowe, SVP &
Treasurer |
|
Crown Castle International
Corp. |
|
713-570-3050 |
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