Delaware | 001-16441 | 76-0470458 | |||||||||||||||||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
(Former name or former address, if changed since last report.) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, $0.01 par value | CCI | New York Stock Exchange |
Exhibit No. | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
CROWN CASTLE INC. | ||||||||||||||
By: | /s/ Edward B. Adams, Jr. | |||||||||||||
Name: | Edward B. Adams, Jr. | |||||||||||||
Title: | Executive Vice President and General Counsel |
NEWS RELEASE
April 17, 2024
|
Contacts: Dan Schlanger, CFO | |||||
Kris Hinson, VP Corp Finance & Treasurer | |||||
FOR IMMEDIATE RELEASE |
Crown Castle Inc. | ||||
713-570-3050 |
(dollars in millions, except per share amounts) | Current Full Year 2024 Outlook(a) |
Full Year 2023 Actual |
Change | % Change | |||||||||||||
Site rental revenues | $6,370 | $6,532 | $(162) | (2)% | |||||||||||||
Net income (loss) | $1,253 | $1,502 | $(249) | (17)% | |||||||||||||
Net income (loss) per share—diluted | $2.88 | $3.46 | $(0.58) | (17)% | |||||||||||||
Adjusted EBITDA(b) |
$4,163 | $4,415 | $(252) | (6)% | |||||||||||||
AFFO(b) |
$3,005 | $3,277 | $(272) | (8)% | |||||||||||||
AFFO per share(b) |
$6.91 | $7.55 | $(0.64) | (8)% |
News Release continued: | Page 2 |
(dollars in millions, except per share amounts) | Q1 2024 |
Q1 2023 |
Change | % Change | |||||||||||||
Site rental revenues | $1,588 | $1,624 | $(36) | (2)% | |||||||||||||
Net income (loss) | $311 | $418 | $(107) | (26)% | |||||||||||||
Net income (loss) per share—diluted | $0.71 | $0.97 | $(0.26) | (27)% | |||||||||||||
Adjusted EBITDA(a) |
$1,036 | $1,104 | $(68) | (6)% | |||||||||||||
AFFO(a) |
$749 | $828 | $(79) | (10)% | |||||||||||||
AFFO per share(a) |
$1.72 | $1.91 | $(0.19) | (10)% |
News Release continued: | Page 3 |
(in millions, except per share amounts) | Full Year 2024(a) |
||||||||||
Site rental billings(b) |
$5,740 | to | $5,780 | ||||||||
Amortization of prepaid rent | $410 | to | $435 | ||||||||
Straight-lined revenues | $175 | to | $200 | ||||||||
Site rental revenues | $6,347 | to | $6,392 | ||||||||
Site rental costs of operations(c) |
$1,686 | to | $1,731 | ||||||||
Services and other gross margin | $65 | to | $95 | ||||||||
Net income (loss) | $1,213 | to | $1,293 | ||||||||
Net income (loss) per share—diluted | $2.79 | to | $2.97 | ||||||||
Adjusted EBITDA(d) |
$4,138 | to | $4,188 | ||||||||
Depreciation, amortization and accretion | $1,680 | to | $1,775 | ||||||||
Interest expense and amortization of deferred financing costs, net(e) |
$933 | to | $978 | ||||||||
FFO(d) |
$2,951 | to | $2,996 | ||||||||
AFFO(d) |
$2,980 | to | $3,030 | ||||||||
AFFO per share(d) |
$6.85 | to | $6.97 |
News Release continued: | Page 4 |
News Release continued: | Page 5 |
News Release continued: | Page 6 |
News Release continued: | Page 7 |
News Release continued: | Page 8 |
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||||||||
(in millions; totals may not sum due to rounding) |
March 31, 2024 | March 31, 2023 | December 31, 2023 | ||||||||||||||
Net income (loss) | $ | 311 | $ | 418 | $ | 1,502 | |||||||||||
Adjustments to increase (decrease) net income (loss): | |||||||||||||||||
Asset write-down charges | 6 | — | 33 | ||||||||||||||
Acquisition and integration costs | — | — | 1 | ||||||||||||||
Depreciation, amortization and accretion | 439 | 431 | 1,754 | ||||||||||||||
Restructuring charges(a) |
11 | — | 85 | ||||||||||||||
Amortization of prepaid lease purchase price adjustments | 4 | 4 | 16 | ||||||||||||||
Interest expense and amortization of deferred financing costs, net(b) |
226 | 202 | 850 | ||||||||||||||
Interest income | (4) | (2) | (15) | ||||||||||||||
Other (income) expense | (2) | 3 | 6 | ||||||||||||||
(Benefit) provision for income taxes | 7 | 7 | 26 | ||||||||||||||
Stock-based compensation expense, net | 38 | 41 | 157 | ||||||||||||||
Adjusted EBITDA(c)(d) |
$ | 1,036 | $ | 1,104 | $ | 4,415 |
Full Year 2024 | |||||||||||
(in millions; totals may not sum due to rounding) |
Outlook(f) |
||||||||||
Net income (loss) | $1,213 | to | $1,293 | ||||||||
Adjustments to increase (decrease) net income (loss): | |||||||||||
Asset write-down charges | $42 | to | $52 | ||||||||
Acquisition and integration costs | $0 | to | $6 | ||||||||
Depreciation, amortization and accretion | $1,680 | to | $1,775 | ||||||||
Restructuring charges(a) |
$0 | to | $15 | ||||||||
Amortization of prepaid lease purchase price adjustments | $15 | to | $17 | ||||||||
Interest expense and amortization of deferred financing costs, net(e) |
$933 | to | $978 | ||||||||
(Gains) losses on retirement of long-term obligations | $0 | to | $0 | ||||||||
Interest income | $(12) | to | $(11) | ||||||||
Other (income) expense | $0 | to | $9 | ||||||||
(Benefit) provision for income taxes | $20 | to | $28 | ||||||||
Stock-based compensation expense, net | $142 | to | $146 | ||||||||
Adjusted EBITDA(c)(d) |
$4,138 | to | $4,188 |
News Release continued: | Page 9 |
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||||||||
(in millions; totals may not sum due to rounding) |
March 31, 2024 | March 31, 2023 | December 31, 2023 | ||||||||||||||
Net income (loss) | $ | 311 | $ | 418 | $ | 1,502 | |||||||||||
Real estate related depreciation, amortization and accretion | 425 | 417 | 1,692 | ||||||||||||||
Asset write-down charges | 6 | — | 33 | ||||||||||||||
FFO(a)(b) |
$ | 742 | $ | 835 | $ | 3,227 | |||||||||||
Weighted-average common shares outstanding—diluted | 435 | 434 | 434 | ||||||||||||||
FFO (from above) | $ | 742 | $ | 835 | $ | 3,227 | |||||||||||
Adjustments to increase (decrease) FFO: | |||||||||||||||||
Straight-lined revenues | (59) | (83) | (274) | ||||||||||||||
Straight-lined expenses | 17 | 20 | 73 | ||||||||||||||
Stock-based compensation expense, net | 38 | 41 | 157 | ||||||||||||||
Non-cash portion of tax provision | 7 | 9 | 8 | ||||||||||||||
Non-real estate related depreciation, amortization and accretion | 14 | 14 | 62 | ||||||||||||||
Amortization of non-cash interest expense | 3 | 4 | 14 | ||||||||||||||
Other (income) expense | (2) | 3 | 6 | ||||||||||||||
Acquisition and integration costs | — | — | 1 | ||||||||||||||
Restructuring charges(c) |
11 | — | 85 | ||||||||||||||
Sustaining capital expenditures | (22) | (15) | (83) | ||||||||||||||
AFFO(a)(b) |
$ | 749 | $ | 828 | $ | 3,277 | |||||||||||
Weighted-average common shares outstanding—diluted | 435 | 434 | 434 | ||||||||||||||
News Release continued: | Page 10 |
For the Three Months Ended |
For the Twelve Months Ended | ||||||||||||||||
(in millions, except per share amounts; totals may not sum due to rounding) |
March 31, 2024 | March 31, 2023 | December 31, 2023 | ||||||||||||||
Net income (loss) | $ | 0.72 | $ | 0.96 | $ | 3.46 | |||||||||||
Real estate related depreciation, amortization and accretion | 0.98 | 0.96 | 3.90 | ||||||||||||||
Asset write-down charges | 0.01 | — | 0.08 | ||||||||||||||
FFO(a)(b) |
$ | 1.71 | $ | 1.92 | $ | 7.43 | |||||||||||
Weighted-average common shares outstanding—diluted | 435 | 434 | 434 | ||||||||||||||
FFO (from above) | $ | 1.71 | $ | 1.92 | $ | 7.43 | |||||||||||
Adjustments to increase (decrease) FFO: | |||||||||||||||||
Straight-lined revenues | (0.14) | (0.19) | (0.63) | ||||||||||||||
Straight-lined expenses | 0.04 | 0.05 | 0.17 | ||||||||||||||
Stock-based compensation expense, net | 0.09 | 0.09 | 0.36 | ||||||||||||||
Non-cash portion of tax provision | 0.02 | 0.02 | 0.02 | ||||||||||||||
Non-real estate related depreciation, amortization and accretion | 0.03 | 0.03 | 0.14 | ||||||||||||||
Amortization of non-cash interest expense | 0.01 | 0.01 | 0.03 | ||||||||||||||
Other (income) expense | — | 0.01 | 0.01 | ||||||||||||||
Acquisition and integration costs | — | — | — | ||||||||||||||
Restructuring charges(c) |
0.03 | — | 0.20 | ||||||||||||||
Sustaining capital expenditures | (0.05) | (0.03) | (0.19) | ||||||||||||||
AFFO(a)(b) |
$ | 1.72 | $ | 1.91 | $ | 7.55 | |||||||||||
Weighted-average common shares outstanding—diluted | 435 | 434 | 434 | ||||||||||||||
News Release continued: | Page 11 |
Full Year 2024 | Full Year 2024 | ||||||||||||||||||||||
(in millions; totals may not sum due to rounding) |
Outlook(a) |
Outlook per share(a) |
|||||||||||||||||||||
Net income (loss) | $1,213 | to | $1,293 | $2.79 | to | $2.97 | |||||||||||||||||
Real estate related depreciation, amortization and accretion | $1,634 | to | $1,714 | $3.76 | to | $3.94 | |||||||||||||||||
Asset write-down charges | $42 | to | $52 | $0.10 | to | $0.12 | |||||||||||||||||
FFO(b)(c) |
$2,951 | to | $2,996 | $6.78 | to | $6.89 | |||||||||||||||||
Weighted-average common shares outstanding—diluted | 435 | 435 | |||||||||||||||||||||
FFO (from above) | $2,951 | to | $2,996 | $6.78 | to | $6.89 | |||||||||||||||||
Adjustments to increase (decrease) FFO: | |||||||||||||||||||||||
Straight-lined revenues | $(197) | to | $(177) | $(0.45) | to | $(0.41) | |||||||||||||||||
Straight-lined expenses | $55 | to | $75 | $0.13 | to | $0.17 | |||||||||||||||||
Stock-based compensation expense, net | $142 | to | $146 | $0.33 | to | $0.34 | |||||||||||||||||
Non-cash portion of tax provision | $2 | to | $17 | $0.00 | to | $0.04 | |||||||||||||||||
Non-real estate related depreciation, amortization and accretion | $46 | to | $61 | $0.11 | to | $0.14 | |||||||||||||||||
Amortization of non-cash interest expense | $9 | to | $19 | $0.02 | to | $0.04 | |||||||||||||||||
Other (income) expense | $0 | to | $9 | $0.00 | to | $0.02 | |||||||||||||||||
(Gains) losses on retirement of long-term obligations | $0 | to | $0 | $0.00 | to | $0.00 | |||||||||||||||||
Acquisition and integration costs | $0 | to | $6 | $0.00 | to | $0.01 | |||||||||||||||||
Restructuring charges(d) |
$0 | to | $15 | $0.00 | to | $0.03 | |||||||||||||||||
Sustaining capital expenditures | $(85) | to | $(65) | $(0.20) | to | $(0.15) | |||||||||||||||||
AFFO(b)(c) |
$2,980 | to | $3,030 | $6.85 | to | $6.97 | |||||||||||||||||
Weighted-average common shares outstanding—diluted | 435 | 435 | |||||||||||||||||||||
News Release continued: | Page 12 |
Three Months Ended March 31, | |||||||||||
(dollars in millions; totals may not sum due to rounding) |
2024 | 2023 | |||||||||
Components of changes in site rental revenues: | |||||||||||
Prior year site rental billings excluding payments for Sprint Cancellations(a) |
$ | 1,357 | $ | 1,318 | |||||||
Prior year payments for Sprint Cancellations(a)(b) |
48 | — | |||||||||
Prior year site rental billings(a) |
1,405 | 1,318 | |||||||||
Core leasing activity(a) |
81 | 57 | |||||||||
Escalators | 24 | 24 | |||||||||
Non-renewals(a) |
(37) | (42) | |||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) |
68 | 39 | |||||||||
Payments for Sprint Cancellations(a)(c) |
(44) | 48 | |||||||||
Non-renewals associated with Sprint Cancellations(a)(c) |
(6) | (2) | |||||||||
Organic Contribution to Site Rental Billings(a) |
17 | 85 | |||||||||
Straight-lined revenues | 59 | 83 | |||||||||
Amortization of prepaid rent | 106 | 137 | |||||||||
Acquisitions(d) |
— | 1 | |||||||||
Other | — | — | |||||||||
Total site rental revenues | $ | 1,588 | $ | 1,624 | |||||||
Year-over-year changes in revenues: | |||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
(2.2) | % | 3.0 | % | |||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(a) |
5.0 | % | 2.9 | % | |||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(a) |
1.2 | % | 6.4 | % |
News Release continued: | Page 13 |
(dollars in millions; totals may not sum due to rounding) |
Full Year 2024 Outlook(a) |
||||||||||
Components of changes in site rental revenues: | |||||||||||
Prior year site rental billings excluding payments for Sprint Cancellations(b) |
$5,505 | ||||||||||
Prior year payments for Sprint Cancellations(b)(c) |
$170 | ||||||||||
Prior year site rental billings(b) |
$5,675 | ||||||||||
Core leasing activity(b) |
$305 | to | $335 | ||||||||
Escalators | $95 | to | $105 | ||||||||
Non-renewals(b) |
$(165) | to | $(145) | ||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(b) |
$245 | to | $285 | ||||||||
Payments for Sprint Cancellations(b)(c) |
$(170) | to | $(160) | ||||||||
Non-renewals associated with Sprint Cancellations(b)(c) |
$(10) | to | $(10) | ||||||||
Organic Contribution to Site Rental Billings(b) |
$70 | to | $110 | ||||||||
Straight-lined revenues | $175 | to | $200 | ||||||||
Amortization of prepaid rent | $410 | to | $435 | ||||||||
Acquisitions(d) |
— | ||||||||||
Other | — | ||||||||||
Total site rental revenues | $6,347 | to | $6,392 | ||||||||
Year-over-year changes in revenues:(e) |
|||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
(2.5)% | ||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(b) |
4.8% | ||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(b) |
1.6% |
News Release continued: | Page 14 |
For the Three Months Ended |
|||||||||||||||||||||||||||||
March 31, 2024 | March 31, 2023 | ||||||||||||||||||||||||||||
(in millions) | Towers | Fiber | Other | Total | Towers | Fiber | Other | Total | |||||||||||||||||||||
Discretionary capital expenditures: | |||||||||||||||||||||||||||||
Communications infrastructure improvements and other capital projects | $ | 20 | $ | 259 | $ | 6 | $ | 285 | $ | 33 | $ | 272 | $ | 6 | $ | 311 | |||||||||||||
Purchases of land interests | 13 | — | — | 13 | 15 | — | — | 15 | |||||||||||||||||||||
Sustaining capital expenditures | 2 | 14 | 6 | 22 | 2 | 7 | 6 | 15 | |||||||||||||||||||||
Total capital expenditures | $ | 35 | $ | 273 | $ | 12 | $ | 320 | $ | 50 | $ | 279 | $ | 12 | $ | 341 | |||||||||||||
(in millions) | Full Year 2024 Outlook(b) |
||||||||||
Discretionary capital expenditures |
$1,530 | to | $1,630 | ||||||||
Less: Prepaid rent additions(c) |
~$430 | ||||||||||
Discretionary capital expenditures less prepaid rent additions |
$1,100 | to | $1,200 |
For the Three Months Ended |
|||||||||||
(in millions) | March 31, 2024 | March 31, 2023 | |||||||||
Interest expense on debt obligations | $ | 223 | $ | 198 | |||||||
Amortization of deferred financing costs and adjustments on long-term debt | 8 | 7 | |||||||||
Capitalized interest | (5) | (3) | |||||||||
Interest expense and amortization of deferred financing costs, net | $ | 226 | $ | 202 |
(in millions) | Full Year 2024 Outlook(b) |
||||||||||
Interest expense on debt obligations | $922 | to | $962 | ||||||||
Amortization of deferred financing costs and adjustments on long-term debt | $20 | to | $30 | ||||||||
Capitalized interest | $(17) | to | $(7) | ||||||||
Interest expense and amortization of deferred financing costs, net | $933 | to | $978 |
News Release continued: | Page 15 |
(in millions) | Face Value(a) |
Final Maturity | |||||||||
Cash and cash equivalents and restricted cash and cash equivalents |
$ | 298 | |||||||||
Senior Secured Notes, Series 2009-1, Class A-2(b) |
38 | Aug. 2029 | |||||||||
Senior Secured Tower Revenue Notes, Series 2015-2(c) |
700 | May 2045 | |||||||||
Senior Secured Tower Revenue Notes, Series 2018-2(c) |
750 | July 2048 | |||||||||
Finance leases and other obligations |
287 | Various | |||||||||
Total secured debt | $ | 1,775 | |||||||||
2016 Revolver(d) |
— | July 2027 | |||||||||
2016 Term Loan A(e) |
1,162 | July 2027 | |||||||||
Commercial Paper Notes(f) |
1,138 | N/A | |||||||||
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 | |||||||||
2.900% Senior Notes | 750 | Mar. 2027 | |||||||||
4.000% Senior Notes |
500 | Mar. 2027 | |||||||||
3.650% Senior Notes |
1,000 | Sept. 2027 | |||||||||
5.000% Senior Notes | 1,000 | Jan. 2028 | |||||||||
3.800% Senior Notes |
1,000 | Feb. 2028 | |||||||||
4.800% Senior Notes | 600 | Sept. 2028 | |||||||||
4.300% Senior Notes |
600 | Feb. 2029 | |||||||||
5.600% Senior Notes |
750 | June 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 | |||||||||
5.100% Senior Notes | 750 | May 2033 | |||||||||
5.800% Senior Notes |
750 | Mar. 2034 | |||||||||
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 | $ | 21,800 | |||||||||
Net Debt(g) |
$ | 23,277 | |||||||||
News Release continued: | Page 16 |
News Release continued: | Page 17 |
News Release continued: | Page 18 |
CROWN CASTLE INC.
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Amounts in millions, except par values)
|
March 31, 2024 |
December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 125 | $ | 105 | |||||||
Restricted cash and cash equivalents |
168 | 171 | |||||||||
Receivables, net | 380 | 481 | |||||||||
Prepaid expenses | 130 | 103 | |||||||||
Deferred site rental receivables | 123 | 116 | |||||||||
Other current assets | 51 | 56 | |||||||||
Total current assets | 977 | 1,032 | |||||||||
Deferred site rental receivables | 2,292 | 2,239 | |||||||||
Property and equipment, net | 15,677 | 15,666 | |||||||||
Operating lease right-of-use assets | 5,990 | 6,187 | |||||||||
Goodwill | 10,085 | 10,085 | |||||||||
Other intangible assets, net | 3,073 | 3,179 | |||||||||
Other assets, net | 137 | 139 | |||||||||
Total assets | $ | 38,231 | $ | 38,527 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 216 | $ | 252 | |||||||
Accrued interest | 160 | 219 | |||||||||
Deferred revenues | 514 | 605 | |||||||||
Other accrued liabilities | 279 | 342 | |||||||||
Current maturities of debt and other obligations | 854 | 835 | |||||||||
Current portion of operating lease liabilities | 313 | 332 | |||||||||
Total current liabilities | 2,336 | 2,585 | |||||||||
Debt and other long-term obligations | 22,560 | 22,086 | |||||||||
Operating lease liabilities | 5,397 | 5,561 | |||||||||
Other long-term liabilities | 1,890 | 1,914 | |||||||||
Total liabilities | 32,183 | 32,146 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Common stock, 0.01 par value; 1,200 shares authorized; shares issued and outstanding: March 31, 2024—435 and December 31, 2023—434 |
4 | 4 | |||||||||
Additional paid-in capital | 18,310 | 18,270 | |||||||||
Accumulated other comprehensive income (loss) | (5) | (4) | |||||||||
Dividends/distributions in excess of earnings | (12,261) | (11,889) | |||||||||
Total equity | 6,048 | 6,381 | |||||||||
Total liabilities and equity | $ | 38,231 | $ | 38,527 |
News Release continued: | Page 19 |
CROWN CASTLE INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(Amounts in millions, except per share amounts)
|
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net revenues: | |||||||||||
Site rental | $ | 1,588 | $ | 1,624 | |||||||
Services and other | 53 | 149 | |||||||||
Net revenues | 1,641 | 1,773 | |||||||||
Operating expenses: | |||||||||||
Costs of operations:(a) |
|||||||||||
Site rental | 430 | 415 | |||||||||
Services and other | 34 | 104 | |||||||||
Selling, general and administrative | 183 | 195 | |||||||||
Asset write-down charges | 6 | — | |||||||||
Depreciation, amortization and accretion | 439 | 431 | |||||||||
Restructuring charges |
11 | — | |||||||||
Total operating expenses | 1,103 | 1,145 | |||||||||
Operating income (loss) | 538 | 628 | |||||||||
Interest expense and amortization of deferred financing costs, net | (226) | (202) | |||||||||
Interest income | 4 | 2 | |||||||||
Other income (expense) | 2 | (3) | |||||||||
Income (loss) before income taxes | 318 | 425 | |||||||||
Benefit (provision) for income taxes | (7) | (7) | |||||||||
Net income (loss) | $ | 311 | $ | 418 | |||||||
Net income (loss), per common share: | |||||||||||
Basic | $ | 0.72 | $ | 0.97 | |||||||
Diluted | $ | 0.71 | $ | 0.97 | |||||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 434 | 433 | |||||||||
Diluted | 435 | 434 |
News Release continued: | Page 20 |
CROWN CASTLE INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In millions of dollars)
|
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 311 | $ | 418 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||
Depreciation, amortization and accretion | 439 | 431 | |||||||||
(Gains) losses on retirement of long-term obligations | — | — | |||||||||
Amortization of deferred financing costs and other non-cash interest | 8 | 7 | |||||||||
Stock-based compensation expense, net | 38 | 41 | |||||||||
Asset write-down charges | 6 | — | |||||||||
Deferred income tax (benefit) provision | 4 | 1 | |||||||||
Other non-cash adjustments, net | 4 | 2 | |||||||||
Changes in assets and liabilities, excluding the effects of acquisitions: | |||||||||||
Increase (decrease) in liabilities | (238) | (183) | |||||||||
Decrease (increase) in assets | 27 | (111) | |||||||||
Net cash provided by (used for) operating activities | 599 | 606 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (320) | (341) | |||||||||
Payments for acquisitions, net of cash acquired | (1) | (67) | |||||||||
Other investing activities, net | 1 | 1 | |||||||||
Net cash provided by (used for) investing activities | (320) | (407) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | — | 999 | |||||||||
Principal payments on debt and other long-term obligations | (14) | (19) | |||||||||
Purchases and redemptions of long-term debt | — | — | |||||||||
Borrowings under revolving credit facility | — | 1,434 | |||||||||
Payments under revolving credit facility | (670) | (1,305) | |||||||||
Net borrowings (repayments) under commercial paper program | 1,138 | (524) | |||||||||
Payments for financing costs | — | (10) | |||||||||
Purchases of common stock | (27) | (28) | |||||||||
Dividends/distributions paid on common stock | (688) | (686) | |||||||||
Net cash provided by (used for) financing activities | (261) | (139) | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
18 | 60 | |||||||||
Effect of exchange rate changes on cash | (1) | 1 | |||||||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period |
281 | 327 | |||||||||
Cash and cash equivalents and restricted cash and cash equivalents at end of period |
$ | 298 | $ | 388 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Interest paid | 282 | 249 | |||||||||
Income taxes paid (refunded) | — | (2) |
News Release continued: | Page 21 |
CROWN CASTLE INC.
SEGMENT OPERATING RESULTS (UNAUDITED)
(In millions of dollars)
|
SEGMENT OPERATING RESULTS | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 |
Three Months Ended March 31, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||
Towers | Fiber | Other | Total |
Towers | Fiber | Other | Total |
||||||||||||||||||||||||||||||||||||||||
Segment site rental revenues | $ | 1,068 | $ | 520 | $ | 1,588 | $ | 1,081 | $ | 543 | $ | 1,624 | |||||||||||||||||||||||||||||||||||
Segment services and other revenues | 46 | 7 | 53 | 146 | 3 | 149 | |||||||||||||||||||||||||||||||||||||||||
Segment revenues | 1,114 | 527 | 1,641 | 1,227 | 546 | 1,773 | |||||||||||||||||||||||||||||||||||||||||
Segment site rental costs of operations | 239 | 182 | 421 | 234 | 172 | 406 | |||||||||||||||||||||||||||||||||||||||||
Segment services and other costs of operations | 28 | 4 | 32 | 99 | 2 | 101 | |||||||||||||||||||||||||||||||||||||||||
Segment costs of operations(a)(b) |
267 | 186 | 453 | 333 | 174 | 507 | |||||||||||||||||||||||||||||||||||||||||
Segment site rental gross margin(c) |
829 | 338 | 1,167 | 847 | 371 | 1,218 | |||||||||||||||||||||||||||||||||||||||||
Segment services and other gross margin(c) |
18 | 3 | 21 | 47 | 1 | 48 | |||||||||||||||||||||||||||||||||||||||||
Segment selling, general and administrative expenses(b) |
21 | 47 | 68 | 31 | 49 | 80 | |||||||||||||||||||||||||||||||||||||||||
Segment operating profit(c) |
826 | 294 | 1,120 | 863 | 323 | 1,186 | |||||||||||||||||||||||||||||||||||||||||
Other selling, general and administrative expenses(b) |
$ | 84 | 84 | $ | 82 | 82 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense, net | 38 | 38 | 41 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion |
439 | 439 | 431 | 431 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring charges(d) |
11 | 11 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Interest expense and amortization of deferred financing costs, net | 226 | 226 | 202 | 202 | |||||||||||||||||||||||||||||||||||||||||||
Other (income) expenses to reconcile to income (loss) before income taxes(e) |
4 | 4 | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes |
$ | 318 | $ | 425 |
TABLE OF CONTENTS | |||||
Page | |||||
Company Overview | |||||
Company Profile | |||||
Strategy | |||||
General Company Information | |||||
Asset Portfolio Footprint | |||||
Historical Common Stock Data | |||||
Annualized Fourth Quarter Dividends Per Share | |||||
Executive Management Team | |||||
Board of Directors | |||||
Research Coverage | |||||
Outlook | |||||
Outlook | |||||
Outlook for Components of Changes in Site Rental Revenues | |||||
Outlook for Components of Changes in Site Rental Revenues by Line of Business | |||||
Outlook for Capital Expenditures | |||||
Outlook for Components of Interest Expense | |||||
Consolidated Financials | |||||
Consolidated Summary Financial Highlights | |||||
Consolidated Components of Changes in Site Rental Revenues | |||||
Consolidated Summary of Capital Expenditures | |||||
Consolidated Return on Invested Capital | |||||
Consolidated Tenant Overview | |||||
Consolidated Annualized Rental Cash Payments at Time of Renewal | |||||
Consolidated Projected Revenues from Tenant Contracts | |||||
Consolidated Projected Expenses from Existing Ground Leases and Fiber Access Agreements | |||||
Capitalization Overview | |||||
Capitalization Overview | |||||
Debt Maturity Overview | |||||
Liquidity Overview | |||||
Summary of Maintenance and Financial Covenants | |||||
Interest Rate Exposure | |||||
Components of Interest Expense | |||||
Towers Segment | |||||
Towers Segment Summary Financial Highlights | |||||
Towers Segment Components of Changes in Site Rental Revenues | |||||
Towers Segment Summary of Capital Expenditures | |||||
Towers Segment Portfolio Highlights | |||||
Towers Segment Cash Yield on Invested Capital | |||||
Summary of Tower Portfolio by Vintage | |||||
Ground Interest Overview | |||||
Fiber Segment | |||||
Fiber Segment Summary Financial Highlights | |||||
Fiber Segment Components of Changes in Site Rental Revenues | |||||
Fiber Segment Summary of Capital Expenditures | |||||
Fiber Segment Revenue Detail by Line of Business | |||||
Fiber Segment Portfolio Highlights | |||||
Fiber Segment Cash Yield on Invested Capital | |||||
Fiber Solutions Revenue Mix | |||||
Appendix of Condensed Consolidated Financial Statements and Non-GAAP Reconciliations |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
COMPANY PROFILE |
STRATEGY |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
GENERAL COMPANY INFORMATION | |||||
Principal executive offices | 8020 Katy Freeway, Houston, TX 77024 | ||||
Common shares trading symbol | CCI | ||||
Stock exchange listing | New York Stock Exchange | ||||
Fiscal year ending date | December 31 | ||||
Fitch - Long-term Issuer Default Rating | BBB+ | ||||
Moody’s - Long-term Corporate Family Rating | Baa3 | ||||
Standard & Poor’s - Long-term Local Issuer Credit Rating | BBB |
ASSET PORTFOLIO FOOTPRINT | ||
HISTORICAL COMMON STOCK DATA | |||||||||||||||||
Three Months Ended | |||||||||||||||||
(in millions, except per share amounts) | 3/31/23 | 6/30/23 | 9/30/23 | 12/31/23 | 3/31/24 | ||||||||||||
High price(b) |
$ | 143.71 | $ | 128.80 | $ | 113.30 | $ | 116.26 | $ | 115.37 | |||||||
Low price(b) |
$ | 115.50 | $ | 102.90 | $ | 86.31 | $ | 82.34 | $ | 101.90 | |||||||
Period end closing price(c) |
$ | 126.34 | $ | 109.03 | $ | 89.51 | $ | 113.55 | $ | 105.83 | |||||||
Dividends paid per common share | $ | 1.57 | $ | 1.57 | $ | 1.57 | $ | 1.57 | $ | 1.57 | |||||||
Volume weighted average price for the period(b) |
$ | 129.04 | $ | 111.12 | $ | 98.90 | $ | 100.51 | $ | 107.35 | |||||||
Common shares outstanding, at period end | 434 | 434 | 434 | 434 | 435 | ||||||||||||
Market value of outstanding common shares, at period end(d) |
$ | 54,792 | $ | 47,286 | $ | 38,818 | $ | 49,249 | $ | 45,985 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
ANNUALIZED FOURTH QUARTER DIVIDENDS PER SHARE(a) |
EXECUTIVE MANAGEMENT TEAM | |||||||||||
Age | Years with Company | Position | |||||||||
Steven J. Moskowitz |
61 | <1 |
President and Chief Executive Officer |
||||||||
Daniel K. Schlanger | 50 | 8 | Executive Vice President and Chief Financial Officer | ||||||||
Michael J. Kavanagh | 55 | 13 | Executive Vice President and Chief Operating Officer - Towers |
||||||||
Christopher D. Levendos | 56 | 5 | Executive Vice President and Chief Operating Officer - Fiber |
||||||||
Philip M. Kelley | 51 | 26 | Executive Vice President - Corporate Development and Strategy | ||||||||
Edward B. Adams, Jr. | 55 | 7 | Executive Vice President and General Counsel | ||||||||
Edmond Chan |
53 | <1 |
Executive Vice President and Chief Information Officer |
BOARD OF DIRECTORS | ||||||||||||||
Name | Position | Committees | Age | Years as Director | ||||||||||
P. Robert Bartolo | Chair | Audit, Compensation, Strategy, Fiber Review, CEO Search |
52 | 10 | ||||||||||
Cindy Christy | Director | Compensation, NESG(b), Strategy |
58 | 16 | ||||||||||
Ari Q. Fitzgerald | Director | Compensation, NESG(b), Strategy |
61 | 21 | ||||||||||
Jason Genrich | Director | Fiber Review, CEO Search |
37 | <1 |
||||||||||
Andrea J. Goldsmith | Director | NESG(b), Strategy |
59 | 6 | ||||||||||
Tammy K. Jones | Director | Audit, NESG(b), Strategy, CEO Search |
58 | 3 | ||||||||||
Kevin T. Kabat | Director | Compensation, NESG(b), CEO Search |
67 | <1 |
||||||||||
Anthony J. Melone | Director | Strategy, Fiber Review |
63 | 8 | ||||||||||
Steven J. Moskowitz |
Director |
61 | <1 |
|||||||||||
Sunit S. Patel | Director | Audit, Fiber Review |
62 | <1 |
||||||||||
Bradley E. Singer | Director |
Audit |
57 | <1 |
||||||||||
Kevin A. Stephens | Director |
Audit, Compensation, Strategy, Fiber Review |
62 | 3 | ||||||||||
Matthew Thornton III | Director |
Compensation, Strategy |
65 | 3 | ||||||||||
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
RESEARCH COVERAGE | ||||||||
Equity Research | ||||||||
Bank of America David Barden (646) 855-1320 |
Barclays Brendan Lynch (212) 526-9428 |
BMO Capital Markets Ari Klein (212) 885-4103 |
||||||
Citigroup Michael Rollins (212) 816-1116 |
Deutsche Bank Matthew Niknam (212) 250-4711 |
Green Street David Guarino (949) 640-8780 |
||||||
HSBC
Luigi Minerva
(207) 991-6928
|
Jefferies Jonathan Petersen (212) 284-1705 |
JPMorgan
Richard Choe
(212) 622-6708
|
||||||
KeyBanc Brandon Nispel (503) 821-3871 |
LightShed Partners Walter Piecyk (646) 450-9258 |
MoffettNathanson Nick Del Deo (212) 519-0025 |
||||||
Morgan Stanley Simon Flannery (212) 761-6432 |
New Street Research Jonathan Chaplin (212) 921-9876 |
Raymond James Ric Prentiss (727) 567-2567 |
||||||
RBC Capital Markets Jonathan Atkin (415) 633-8589 |
Scotiabank
Maher Yaghi
(437) 995-5548
|
TD Cowen
Michael Elias
(646) 562-1358
|
||||||
UBS Batya Levi (212) 713-8824 |
Wells Fargo Securities, LLC Eric Luebchow (312) 630-2386 |
Wolfe Research Andrew Rosivach (646) 582-9350 |
||||||
Rating Agencies | ||||||||
Fitch
Salonie Sehgal
(312) 368-3137
|
Moody’s
Ranjini Venkatesan
(212) 553-3828
|
Standard & Poor’s Ryan Gilmore (212) 438-0602 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
OUTLOOK | |||||||||||
(in millions, except per share amounts) | Full Year 2024 Outlook(a) |
||||||||||
Site rental billings(b) |
$5,740 | to | $5,780 | ||||||||
Amortization of prepaid rent | $410 | to | $435 | ||||||||
Straight-lined revenues | $175 | to | $200 | ||||||||
Site rental revenues | $6,347 | to | $6,392 | ||||||||
Site rental costs of operations(c) |
$1,686 | to | $1,731 | ||||||||
Services and other gross margin | $65 | to | $95 | ||||||||
Net income (loss) | $1,213 | to | $1,293 | ||||||||
Net income (loss) per share—diluted | $2.79 | to | $2.97 | ||||||||
Adjusted EBITDA(d) |
$4,138 | to | $4,188 | ||||||||
Depreciation, amortization and accretion | $1,680 | to | $1,775 | ||||||||
Interest expense and amortization of deferred financing costs, net(e) |
$933 | to | $978 | ||||||||
FFO(d) |
$2,951 | to | $2,996 | ||||||||
AFFO(d) |
$2,980 | to | $3,030 | ||||||||
AFFO per share(d) |
$6.85 | to | $6.97 |
OUTLOOK FOR COMPONENTS OF CHANGES IN SITE RENTAL REVENUES | |||||||||||
(dollars in millions; totals may not sum due to rounding) |
Full Year 2024 Outlook(a) |
||||||||||
Components of changes in site rental revenues: | |||||||||||
Prior year site rental billings excluding payments for Sprint Cancellations(b) |
$5,505 | ||||||||||
Prior year payments for Sprint Cancellations(b)(f) |
$170 | ||||||||||
Prior year site rental billings(b) |
$5,675 | ||||||||||
Core leasing activity(b) |
$305 | to | $335 | ||||||||
Escalators | $95 | to | $105 | ||||||||
Non-renewals(b) |
$(165) | to | $(145) | ||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(b) |
$245 | to | $285 | ||||||||
Payments for Sprint Cancellations(b)(f) |
$(170) | to | $(160) | ||||||||
Non-renewals associated with Sprint Cancellations(b)(f) |
$(10) | to | $(10) | ||||||||
Organic Contribution to Site Rental Billings(b) |
$70 | to | $110 | ||||||||
Straight-lined revenues | $175 | to | $200 | ||||||||
Amortization of prepaid rent | $410 | to | $435 | ||||||||
Acquisitions(g) |
— | ||||||||||
Other | — | ||||||||||
Total site rental revenues | $6,347 | to | $6,392 | ||||||||
Year-over-year changes in revenues:(h) |
|||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
(2.5)% | ||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(b) |
4.8% | ||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(b) |
1.6% |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
OUTLOOK FOR COMPONENTS OF CHANGES IN SITE RENTAL REVENUES BY LINE OF BUSINESS | |||||||||||||||||||||||||||||||||||
Full Year 2024 Outlook(a) |
|||||||||||||||||||||||||||||||||||
Towers Segment | Fiber Segment | ||||||||||||||||||||||||||||||||||
(dollars in millions) | Small Cells | Fiber Solutions | |||||||||||||||||||||||||||||||||
Core leasing activity(b) |
$105 | to | $115 | $55 | to | $65 | $145 | to | $155 | ||||||||||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(b)(c)(d) |
4.5% | 13% | 3% | ||||||||||||||||||||||||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(b)(c) |
4.5% | (9) | (3) | ||||||||||||||||||||||||||||||||
OUTLOOK FOR CAPITAL EXPENDITURES | |||||||||||||||||||||||||||||||||||
Full Year 2024 Outlook(a)(e) |
|||||||||||||||||||||||||||||||||||
(in millions) | Towers Segment | Fiber Segment | Total | ||||||||||||||||||||||||||||||||
Capital expenditures | ~$180 | $1,350 | to |
$1,450 | $1,530 | to | $1,630 | ||||||||||||||||||||||||||||
Less: Prepaid rent additions(f) |
~$80 | ~$350 | ~$430 | ||||||||||||||||||||||||||||||||
Capital expenditures less prepaid rent additions | ~$100 | $1,000 | to |
$1,100 | $1,100 | to | $1,200 | ||||||||||||||||||||||||||||
OUTLOOK FOR COMPONENTS OF INTEREST EXPENSE | |||||||||||
(in millions) | Full Year 2024 Outlook(a) |
||||||||||
Interest expense on debt obligations | $922 | to | $962 | ||||||||
Amortization of deferred financing costs and adjustments on long-term debt | $20 | to | $30 | ||||||||
Capitalized interest | $(17) | to | $(7) | ||||||||
Interest expense and amortization of deferred financing costs, net | $933 | to | $978 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONSOLIDATED SUMMARY FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions, except per share amounts; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Site rental | |||||||||||||||||||||||||||||
Site rental billings(a) |
$ | 1,404 | $ | 1,460 | $ | 1,393 | $ | 1,418 | $ | 1,423 | |||||||||||||||||||
Amortization of prepaid rent | 137 | 188 | 126 | 134 | 106 | ||||||||||||||||||||||||
Straight-lined revenues | 83 | 80 | 58 | 51 | 59 | ||||||||||||||||||||||||
Total site rental | 1,624 | 1,728 | 1,577 | 1,603 | 1,588 | ||||||||||||||||||||||||
Services and other | 149 | 139 | 90 | 71 | 53 | ||||||||||||||||||||||||
Net revenues | $ | 1,773 | $ | 1,867 | $ | 1,667 | $ | 1,674 | $ | 1,641 | |||||||||||||||||||
Select operating expenses: | |||||||||||||||||||||||||||||
Costs of operations(b) |
|||||||||||||||||||||||||||||
Site rental exclusive of straight-lined expenses | $ | 398 | $ | 406 | $ | 403 | $ | 390 | $ | 414 | |||||||||||||||||||
Straight-lined expenses | 17 | 18 | 17 | 17 | 16 | ||||||||||||||||||||||||
Total site rental | 415 | 424 | 420 | 407 | 430 | ||||||||||||||||||||||||
Services and other | 104 | 98 | 66 | 48 | 34 | ||||||||||||||||||||||||
Total costs of operations | 519 | 522 | 486 | 455 | 464 | ||||||||||||||||||||||||
Selling, general and administrative | $ | 195 | $ | 210 | $ | 176 | $ | 178 | $ | 183 | |||||||||||||||||||
Net income (loss) | $ | 418 | $ | 455 | $ | 265 | $ | 361 | $ | 311 | |||||||||||||||||||
Adjusted EBITDA(c) |
1,104 | 1,188 | 1,047 | 1,076 | 1,036 | ||||||||||||||||||||||||
Depreciation, amortization and accretion | 431 | 445 | 439 | 439 | 439 | ||||||||||||||||||||||||
Interest expense and amortization of deferred financing costs, net | 202 | 208 | 217 | 223 | 226 | ||||||||||||||||||||||||
FFO(c) |
835 | 901 | 698 | 790 | 742 | ||||||||||||||||||||||||
AFFO(c) |
$ | 828 | $ | 891 | $ | 767 | $ | 790 | $ | 749 | |||||||||||||||||||
Weighted-average common shares outstanding— diluted |
434 | 434 | 434 | 434 | 435 | ||||||||||||||||||||||||
Net income (loss) per share—diluted | $ | 0.97 | $ | 1.05 | $ | 0.61 | $ | 0.83 | $ | 0.71 | |||||||||||||||||||
AFFO per share(c) |
$ | 1.91 | $ | 2.05 | $ | 1.77 | $ | 1.82 | $ | 1.72 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONSOLIDATED COMPONENTS OF CHANGES IN SITE RENTAL REVENUES | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(dollars in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Components of changes in site rental revenues: | |||||||||||||||||||||||||||||
Prior year site rental billings excluding payments for Sprint Cancellations(a) |
$ | 1,318 | $ | 1,304 | $ | 1,339 | $ | 1,348 | $ | 1,357 | |||||||||||||||||||
Prior year payments for Sprint Cancellations(a)(b) |
— | — | — | — | 48 | ||||||||||||||||||||||||
Prior year site rental billings(a) |
$ | 1,318 | $ | 1,304 | $ | 1,339 | $ | 1,348 | $ | 1,405 | |||||||||||||||||||
Core leasing activity(a) |
57 | 73 | 66 | 79 | 81 | ||||||||||||||||||||||||
Escalators | 24 | 24 | 24 | 24 | 24 | ||||||||||||||||||||||||
Non-renewals(a) |
(42) | (42) | (37) | (36) | (37) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) |
39 | 54 | 53 | 67 | 68 | ||||||||||||||||||||||||
Payments for Sprint Cancellations(a)(c) |
48 | 106 | 6 | 10 | (44) | ||||||||||||||||||||||||
Non-renewals associated with Sprint Cancellations(a)(c) |
(2) | (6) | (6) | (7) | (6) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings(a) |
85 | 155 | 53 | 70 | 17 | ||||||||||||||||||||||||
Straight-lined revenues | 83 | 80 | 58 | 51 | 59 | ||||||||||||||||||||||||
Amortization of prepaid rent | 137 | 188 | 126 | 134 | 106 | ||||||||||||||||||||||||
Acquisitions(d) |
1 | 1 | 1 | 1 | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Total site rental revenues | $ | 1,624 | $ | 1,728 | $ | 1,577 | $ | 1,603 | $ | 1,588 | |||||||||||||||||||
Year-over-year changes in revenues: | |||||||||||||||||||||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
3.0 | % | 10.3 | % | 0.6 | % | 1.6 | % | (2.2) | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(a) |
2.9 | % | 4.2 | % | 4.0 | % | 4.9 | % | 5.0 | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(a) |
6.4 | % | 11.9 | % | 3.9 | % | 5.2 | % | 1.2 | % |
CONSOLIDATED SUMMARY OF CAPITAL EXPENDITURES(a) | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(dollars in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Discretionary capital expenditures: | |||||||||||||||||||||||||||||
Communications infrastructure improvements and other capital projects | $ | 311 | $ | 338 | $ | 312 | $ | 316 | $ | 285 | |||||||||||||||||||
Purchases of land interests | 15 | 23 | 13 | 13 | 13 | ||||||||||||||||||||||||
Total discretionary capital expenditures | 326 | 361 | 325 | 329 | 298 | ||||||||||||||||||||||||
Sustaining capital expenditures | 15 | 18 | 22 | 28 | 22 | ||||||||||||||||||||||||
Total capital expenditures | 341 | 379 | 347 | 357 | 320 | ||||||||||||||||||||||||
Less: Prepaid rent additions(e) |
81 | 84 | 80 | 103 | 68 | ||||||||||||||||||||||||
Capital expenditures less prepaid rent additions | $ | 260 | $ | 295 | $ | 267 | $ | 254 | $ | 252 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONSOLIDATED RETURN ON INVESTED CAPITAL(a) | ||||||||
(as of March 31, 2024; dollars in millions) |
Q1 2024 LQA |
Q1 2023 LQA | ||||||
Adjusted EBITDA(b) |
$ | 4,144 | $ | 4,416 | ||||
Cash taxes (paid) refunded | — | 8 | ||||||
Adjusted EBITDA less cash taxes paid |
$ | 4,144 | $ | 4,424 | ||||
Historical gross investment in property and equipment(c) |
$ | 29,119 | $ | 27,911 | ||||
Historical gross investment in site rental contracts and tenant relationships | 7,880 | 7,862 | ||||||
Historical gross investment in goodwill | 10,085 | 10,085 | ||||||
Consolidated Invested Capital(a) |
$ | 47,084 | $ | 45,858 | ||||
Consolidated Return on Invested Capital(a) |
8.8 | % | 9.6 | % |
CONSOLIDATED TENANT OVERVIEW | |||||||||||
(as of March 31, 2024) |
Percentage of Q1 2024 LQA Site Rental Revenues |
Weighted Average Current Term Remaining(d) |
Long-Term Credit Rating (S&P / Moody’s) |
||||||||
T-Mobile | 35% | 7 | BBB / Baa2 |
||||||||
AT&T | 19% | 5 | BBB / Baa2 | ||||||||
Verizon | 20% | 7 | BBB+ / Baa1 | ||||||||
All Others Combined | 26% | 3 | N/A | ||||||||
Total / Weighted Average | 100% | 6 |
CONSOLIDATED ANNUALIZED RENTAL CASH PAYMENTS AT TIME OF RENEWAL(e) | ||||||||||||||||||||
Remaining Nine Months |
Years Ending December 31, | |||||||||||||||||||
(as of March 31, 2024; in millions) |
2024 |
2025 |
2026 |
2027 |
2028 |
|||||||||||||||
T-Mobile | $ | 24 | $ | 241 | $ | 53 | $ | 58 | $ | 42 | ||||||||||
AT&T | 12 | 20 | 29 | 31 | 757 | |||||||||||||||
Verizon | 17 | 33 | 36 | 32 | 46 | |||||||||||||||
All Others Combined | 182 | 200 | 212 | 109 | 84 | |||||||||||||||
Total | $ | 235 | $ | 494 | $ | 330 | $ | 230 | $ | 929 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONSOLIDATED PROJECTED REVENUES FROM TENANT CONTRACTS(a) | ||||||||||||||||||||
Remaining Nine Months |
Years Ending December 31, | |||||||||||||||||||
(as of March 31, 2024; in millions) |
2024 |
2025 |
2026 |
2027 |
2028 |
|||||||||||||||
Components of site rental revenues: | ||||||||||||||||||||
Site rental billings(b) |
$ | 4,286 | $ | 5,647 | $ | 5,763 | $ | 5,887 | $ | 6,013 | ||||||||||
Amortization of prepaid rent | 281 | 301 | 257 | 216 | 172 | |||||||||||||||
Straight-lined revenues | 118 | 49 | (58) | (177) | (240) | |||||||||||||||
Site rental revenues | $ | 4,685 | $ | 5,997 | $ | 5,962 | $ | 5,926 | $ | 5,945 |
CONSOLIDATED PROJECTED EXPENSES FROM EXISTING GROUND LEASES AND FIBER ACCESS AGREEMENTS(c) | ||||||||||||||||||||
Remaining Nine Months |
Years Ending December 31, | |||||||||||||||||||
(as of March 31, 2024; in millions) |
2024 |
2025 |
2026 |
2027 |
2028 |
|||||||||||||||
Components of ground lease and fiber access agreement expenses: | ||||||||||||||||||||
Ground lease and fiber access agreement expenses exclusive of straight-lined expenses | $ | 778 | $ | 1,055 | $ | 1,077 | $ | 1,099 | $ | 1,120 | ||||||||||
Straight-lined expenses | 42 | 45 | 33 | 21 | 12 | |||||||||||||||
Ground lease and fiber access agreement expenses | $ | 820 | $ | 1,100 | $ | 1,110 | $ | 1,120 | $ | 1,132 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CAPITALIZATION OVERVIEW | |||||||||||||||||
(as of March 31, 2024; dollars in millions) |
Face Value(a) |
Fixed vs. Variable | Interest Rate(b) |
Debt to LQA Adjusted EBITDA(c) |
Maturity | ||||||||||||
Cash and cash equivalents and restricted cash and cash equivalents |
$ | 298 | |||||||||||||||
Senior Secured Notes, Series 2009-1, Class A-2(d) |
38 | Fixed | 9.0% | 2029 | |||||||||||||
Senior Secured Tower Revenue Notes, Series 2015-2(e) |
700 | Fixed | 3.7% | 2045 |
|||||||||||||
Senior Secured Tower Revenue Notes, Series 2018-2(e) |
750 | Fixed | 4.2% | 2048 |
|||||||||||||
Finance leases and other obligations | 287 | Fixed | Various | Various |
|||||||||||||
Total secured debt | $ | 1,775 | 4.1% | 0.4x | |||||||||||||
2016 Revolver(f) |
— | Variable | 2027 | ||||||||||||||
2016 Term Loan A(g) |
1,162 | Variable | 6.4% | 2027 | |||||||||||||
Commercial Paper Notes(h) |
1,138 | Variable | 5.9% | Various |
|||||||||||||
3.200% Senior Notes | 750 | Fixed | 3.2% | 2024 | |||||||||||||
1.350% Senior Notes | 500 | Fixed | 1.4% | 2025 | |||||||||||||
4.450% Senior Notes | 900 | Fixed | 4.5% | 2026 | |||||||||||||
3.700% Senior Notes | 750 | Fixed | 3.7% | 2026 | |||||||||||||
1.050% Senior Notes | 1,000 | Fixed | 1.1% | 2026 | |||||||||||||
2.900% Senior Notes | 750 | Fixed | 2.9% | 2027 | |||||||||||||
4.000% Senior Notes | 500 | Fixed | 4.0% | 2027 | |||||||||||||
3.650% Senior Notes | 1,000 | Fixed | 3.7% | 2027 | |||||||||||||
5.000% Senior Notes | 1,000 | Fixed | 5.0% | 2028 | |||||||||||||
3.800% Senior Notes | 1,000 | Fixed | 3.8% | 2028 | |||||||||||||
4.800% Senior Notes | 600 | Fixed | 4.8% | 2028 | |||||||||||||
4.300% Senior Notes | 600 | Fixed | 4.3% | 2029 | |||||||||||||
5.600% Senior Notes |
750 | Fixed | 5.6% | 2029 |
|||||||||||||
3.100% Senior Notes | 550 | Fixed | 3.1% | 2029 | |||||||||||||
3.300% Senior Notes | 750 | Fixed | 3.3% | 2030 | |||||||||||||
2.250% Senior Notes | 1,100 | Fixed | 2.3% | 2031 | |||||||||||||
2.100% Senior Notes | 1,000 | Fixed | 2.1% | 2031 | |||||||||||||
2.500% Senior Notes | 750 | Fixed | 2.5% | 2031 | |||||||||||||
5.100% Senior Notes | 750 | Fixed | 5.1% | 2033 | |||||||||||||
5.800% Senior Notes |
750 | Fixed | 5.8% | 2034 |
|||||||||||||
2.900% Senior Notes | 1,250 | Fixed | 2.9% | 2041 | |||||||||||||
4.750% Senior Notes | 350 | Fixed | 4.8% | 2047 | |||||||||||||
5.200% Senior Notes | 400 | Fixed | 5.2% | 2049 | |||||||||||||
4.000% Senior Notes | 350 | Fixed | 4.0% | 2049 | |||||||||||||
4.150% Senior Notes | 500 | Fixed | 4.2% | 2050 | |||||||||||||
3.250% Senior Notes | 900 | Fixed | 3.3% | 2051 | |||||||||||||
Total unsecured debt | $ | 21,800 | 3.9% | 5.3x | |||||||||||||
Net Debt(i) |
$ | 23,277 | 3.9% | 5.6x | |||||||||||||
Market Capitalization(j) |
45,985 | ||||||||||||||||
Firm Value(k) |
$ | 69,262 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
DEBT MATURITY OVERVIEW(a)(b) |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
LIQUIDITY OVERVIEW(a) | |||||
(in millions) | March 31, 2024 |
||||
Cash and cash equivalents, and restricted cash and cash equivalents(b) |
$ | 298 | |||
Undrawn 2016 Revolver availability(c) |
6,960 | ||||
Total debt and other obligations (current and non-current)(d) |
23,414 | ||||
Total equity | 6,048 |
SUMMARY OF MAINTENANCE AND FINANCIAL COVENANTS | |||||||||||||||||
Debt | Borrower / Issuer | Covenant(e) |
Covenant Level Requirement | As of March 31, 2024 |
|||||||||||||
Maintenance Financial Covenants(f) | |||||||||||||||||
2016 Credit Facility | CCI | Total Net Leverage Ratio | ≤ 6.50x | 5.3x | |||||||||||||
2016 Credit Facility | CCI | Total Senior Secured Leverage Ratio | ≤ 3.50x | 0.3x | |||||||||||||
2016 Credit Facility | CCI | Consolidated Interest Coverage Ratio(g) |
N/A | N/A | |||||||||||||
Financial covenants requiring excess cash flows to be deposited in a cash trap reserve account and not released | |||||||||||||||||
2015 Tower Revenue Notes | Crown Castle Towers LLC and its Subsidiaries | Debt Service Coverage Ratio | > 1.75x | (h) |
17.8x | ||||||||||||
2018 Tower Revenue Notes | Crown Castle Towers LLC and its Subsidiaries | Debt Service Coverage Ratio | > 1.75x | (h) |
17.8x | ||||||||||||
2009 Securitized Notes | Pinnacle Towers Acquisition Holdings LLC and its Subsidiaries | Debt Service Coverage Ratio | > 1.30x | (h) |
27.7x | ||||||||||||
Financial covenants restricting ability of relevant issuer to issue additional notes under the applicable indenture | |||||||||||||||||
2015 Tower Revenue Notes | Crown Castle Towers LLC and its Subsidiaries | Debt Service Coverage Ratio | ≥ 2.00x | (i) |
17.8x | ||||||||||||
2018 Tower Revenue Notes | Crown Castle Towers LLC and its Subsidiaries | Debt Service Coverage Ratio | ≥ 2.00x | (i) |
17.8x | ||||||||||||
2009 Securitized Notes | Pinnacle Towers Acquisition Holdings LLC and its Subsidiaries | Debt Service Coverage Ratio | ≥ 2.34x | (i) |
27.7x |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
INTEREST RATE EXPOSURE(a) | |||||||||||||||||
(as of March 31, 2024; dollars in millions) | |||||||||||||||||
Fixed Rate Debt | Floating Rate Debt | ||||||||||||||||
Face value of principal outstanding(b) |
$20,988 | Face value of principal outstanding(b) |
$2,300 | ||||||||||||||
% of total debt | 90% | % of total debt | 10% | ||||||||||||||
Weighted average interest rate | 3.6% | Weighted average interest rate(c) |
6.1% | ||||||||||||||
Upcoming maturities: | 2024(d) |
2025(e) |
Interest rate sensitivity of 25 bps increase in interest rates: | ||||||||||||||
Face value of principal outstanding(b) |
$750 | $1,200 | Full year effect(f) |
$5.8 | |||||||||||||
Weighted average interest rate | 3.2% | 2.7% |
COMPONENTS OF INTEREST EXPENSE | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions) | Q1 | Q2 | Q3 | Q4 | Q4 |
||||||||||||||||||||||||
Interest expense on debt obligations | $ | 198 | $ | 205 | $ | 213 | $ | 220 | $ | 223 | |||||||||||||||||||
Amortization of deferred financing costs and adjustments on long-term debt | 7 | 7 | 8 | 7 | 8 | ||||||||||||||||||||||||
Capitalized interest | (3) | (4) | (4) | (4) | (5) | ||||||||||||||||||||||||
Interest expense and amortization of deferred financing costs, net | $ | 202 | $ | 208 | $ | 217 | $ | 223 | $ | 226 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
TOWERS SEGMENT SUMMARY FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Segment net revenues: | |||||||||||||||||||||||||||||
Site rental | |||||||||||||||||||||||||||||
Site rental billings(a) |
$ | 926 | $ | 929 | $ | 956 | $ | 970 | $ | 970 | |||||||||||||||||||
Amortization of prepaid rent | 72 | 67 | 61 | 59 | 41 | ||||||||||||||||||||||||
Straight-lined revenues | 83 | 84 | 57 | 50 | 57 | ||||||||||||||||||||||||
Total site rental | 1,081 | 1,080 | 1,074 | 1,079 | 1,068 | ||||||||||||||||||||||||
Services and other | 146 | 124 | 86 | 65 | 46 | ||||||||||||||||||||||||
Net revenues | $ | 1,227 | $ | 1,204 | $ | 1,160 | $ | 1,144 | $ | 1,114 | |||||||||||||||||||
Segment operating expenses: | |||||||||||||||||||||||||||||
Costs of operations(b) |
|||||||||||||||||||||||||||||
Site rental exclusive of straight-lined expenses | $ | 217 | $ | 226 | $ | 219 | $ | 214 | $ | 223 | |||||||||||||||||||
Straight-lined expenses | 17 | 17 | 17 | 17 | 16 | ||||||||||||||||||||||||
Total site rental | 234 | 243 | 236 | 231 | 239 | ||||||||||||||||||||||||
Services and other | 99 | 92 | 61 | 42 | 28 | ||||||||||||||||||||||||
Total costs of operations | 333 | 335 | 297 | 273 | 267 | ||||||||||||||||||||||||
Selling, general and administrative(c) |
31 | 30 | 24 | 19 | 21 | ||||||||||||||||||||||||
Segment operating profit(d) |
$ | 863 | $ | 839 | $ | 839 | $ | 852 | $ | 826 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
TOWERS SEGMENT COMPONENTS OF CHANGES IN SITE RENTAL REVENUES | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(dollars in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Components of changes in site rental revenues: | |||||||||||||||||||||||||||||
Prior year site rental billings(a) |
$ | 879 | $ | 877 | $ | 915 | $ | 921 | $ | 926 | |||||||||||||||||||
Core leasing activity(a) |
32 | 38 | 25 | 32 | 28 | ||||||||||||||||||||||||
Escalators | 22 | 22 | 22 | 23 | 23 | ||||||||||||||||||||||||
Non-renewals(a) |
(8) | (8) | (7) | (7) | (8) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings(a) |
46 | 51 | 40 | 48 | 43 | ||||||||||||||||||||||||
Straight-lined revenues | 83 | 84 | 57 | 50 | 57 | ||||||||||||||||||||||||
Amortization of prepaid rent | 72 | 67 | 61 | 59 | 41 | ||||||||||||||||||||||||
Acquisitions(b) |
1 | 1 | 1 | 1 | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Total site rental revenues | $ | 1,081 | $ | 1,080 | $ | 1,074 | $ | 1,079 | $ | 1,068 | |||||||||||||||||||
Year-over-year changes in revenues: | |||||||||||||||||||||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
0.6 | % | 0.2 | % | (0.9) | % | (0.6) | % | (1.2) | % | |||||||||||||||||||
Changes in revenues as a percentage of prior year site rental billings: | |||||||||||||||||||||||||||||
Organic Contribution to Site Rental Billings(a) |
5.2 | % | 5.8 | % | 4.4 | % | 5.2 | % | 4.6 | % |
TOWERS SEGMENT SUMMARY OF CAPITAL EXPENDITURES(a) | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Discretionary capital expenditures: | |||||||||||||||||||||||||||||
Communications infrastructure improvements and other capital projects | $ | 33 | $ | 34 | $ | 34 | $ | 21 | $ | 20 | |||||||||||||||||||
Purchases of land interests | 15 | 23 | 13 | 13 | 13 | ||||||||||||||||||||||||
Total discretionary capital expenditures | 48 | 57 | 47 | 34 | 33 | ||||||||||||||||||||||||
Sustaining capital expenditures | 2 | 4 | 2 | — | 2 | ||||||||||||||||||||||||
Total capital expenditures | 50 | 61 | 49 | 34 | 35 | ||||||||||||||||||||||||
Less: Prepaid rent additions(c) |
22 | 25 | 25 | 20 | 12 | ||||||||||||||||||||||||
Capital expenditures less prepaid rent additions | $ | 28 | $ | 36 | $ | 24 | $ | 14 | $ | 23 | |||||||||||||||||||
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
TOWERS SEGMENT PORTFOLIO HIGHLIGHTS | |||||
(as of March 31, 2024) |
|||||
Number of towers (in thousands)(a) |
40 | ||||
Average number of tenants per tower | 2.5 | ||||
Remaining contracted tenant receivables (in billions)(b) |
$ | 33 | |||
Weighted average remaining tenant contract term (years)(b)(c) |
7 | ||||
Percent of towers in the Top 50 / 100 Basic Trading Areas | 56% / 71% | ||||
Percent of ground leased / owned(d) |
58% / 42% |
||||
Weighted average maturity of ground leases (years)(d)(e) |
35 |
TOWERS SEGMENT CASH YIELD ON INVESTED CAPITAL(f) | |||||||||||
(as of March 31, 2024; dollars in millions) |
Q1 2024 LQA |
Q1 2023 LQA |
|||||||||
Segment site rental gross margin(g) |
$ | 3,316 | $ | 3,388 | |||||||
Less: Amortization of prepaid rent | (164) | (288) | |||||||||
Less: Straight-lined revenues | (228) | (332) | |||||||||
Add: Straight-lined expenses | 64 | 68 | |||||||||
Numerator | $ | 2,988 | $ | 2,836 | |||||||
Segment net investment in property and equipment(h) |
$ | 13,464 | $ | 13,352 | |||||||
Segment investment in site rental contracts and tenant relationships | 4,590 | 4,572 | |||||||||
Segment investment in goodwill(i) |
5,351 | 5,351 | |||||||||
Segment Net Invested Capital(f) |
$ | 23,405 | $ | 23,275 | |||||||
Segment Cash Yield on Invested Capital(f) |
12.8 | % | 12.2 | % |
SUMMARY OF TOWER PORTFOLIO BY VINTAGE(j) | ||||||||||||||
(as of March 31, 2024; dollars in thousands) |
Acquired and Built 2006 and Prior | Acquired and Built 2007 to Present | ||||||||||||
Cash yield(k) |
21 | % | 10 | % | ||||||||||
Number of tenants per tower | 3.0 | 2.3 | ||||||||||||
Last quarter annualized average cash site rental revenue per tower(l) |
$ | 135 | $ | 82 | ||||||||||
Last quarter annualized average site rental gross cash margin per tower(m) |
$ | 117 | $ | 58 | ||||||||||
Net invested capital per tower(n) |
$ | 560 | $ | 585 | ||||||||||
Number of towers | 11,197 | 28,826 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
GROUND INTEREST OVERVIEW | |||||||||||||||||||||||
(as of March 31, 2024; dollars in millions) |
LQA Cash Site Rental Revenues(a) |
Percentage of LQA Cash Site Rental Revenues(a) |
LQA Towers Segment Site Rental Gross Cash Margin(b) |
Percentage of LQA Towers Segment Site Rental Gross Cash Margin(b) |
Number of Towers(c) |
Percentage of Towers | Weighted Average Term Remaining (by years)(d) |
||||||||||||||||
Less than 10 years | $ | 433 | 11 | % | $ | 237 | 8 | % | 5,528 | 14 | % | ||||||||||||
10 to 20 years | 568 | 15 | % | 362 | 12 | % | 6,109 | 15 | % | ||||||||||||||
Greater than 20 years | 1,571 | 40 | % | 1,146 | 38 | % | 16,667 | 42 | % | ||||||||||||||
Total leased | $ | 2,573 | 66 | % | $ | 1,745 | 58 | % | 28,304 | 71 | % | 35 | |||||||||||
Owned | $ | 1,318 | 34 | % | $ | 1,242 | 42 | % | 11,719 | 29 | % | ||||||||||||
Total / Average | $ | 3,891 | 100 | % | $ | 2,987 | 100 | % | 40,023 | 100 | % |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
FIBER SEGMENT SUMMARY FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Segment net revenues: | |||||||||||||||||||||||||||||
Site rental | |||||||||||||||||||||||||||||
Site rental billings(a) |
$ | 478 | $ | 531 | $ | 436 | $ | 447 | $ | 453 | |||||||||||||||||||
Amortization of prepaid rent | 65 | 121 | 66 | 75 | 65 | ||||||||||||||||||||||||
Straight-lined revenues | — | (4) | 1 | 2 | 2 | ||||||||||||||||||||||||
Total site rental | 543 | 648 | 503 | 524 | 520 | ||||||||||||||||||||||||
Services and other | 3 | 15 | 4 | 6 | 7 | ||||||||||||||||||||||||
Net revenues | $ | 546 | $ | 663 | $ | 507 | $ | 530 | $ | 527 | |||||||||||||||||||
Segment operating expenses | |||||||||||||||||||||||||||||
Costs of operations(b) |
|||||||||||||||||||||||||||||
Site rental exclusive of straight-lined expenses | $ | 172 | $ | 170 | $ | 175 | $ | 168 | $ | 182 | |||||||||||||||||||
Straight-lined expenses | — | 1 | — | — | — | ||||||||||||||||||||||||
Total site rental | 172 | 171 | 175 | 168 | 182 | ||||||||||||||||||||||||
Services and other | 2 | 3 | 3 | 4 | 4 | ||||||||||||||||||||||||
Total costs of operations | 174 | 174 | 178 | 172 | 186 | ||||||||||||||||||||||||
Selling, general and administrative(c) |
49 | 51 | 48 | 47 | 47 | ||||||||||||||||||||||||
Segment operating profit(d) |
$ | 323 | $ | 438 | $ | 281 | $ | 311 | $ | 294 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
FIBER SEGMENT COMPONENTS OF CHANGES IN SITE RENTAL REVENUES | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(dollars in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Components of changes in site rental revenues: | |||||||||||||||||||||||||||||
Prior year site rental billings excluding payments for Sprint Cancellations(a) |
$ | 439 | $ | 427 | $ | 424 | $ | 426 | $ | 431 | |||||||||||||||||||
Prior year payments for Sprint Cancellations(a)(b) |
— | — | — | — | 48 | ||||||||||||||||||||||||
Prior year site rental billings(a) |
$ | 439 | $ | 427 | $ | 424 | $ | 426 | $ | 479 | |||||||||||||||||||
Core leasing activity(a) |
25 | 36 | 41 | 47 | 53 | ||||||||||||||||||||||||
Escalators | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Non-renewals(a) |
(34) | (34) | (30) | (30) | (29) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) |
(7) | 3 | 13 | 19 | 25 | ||||||||||||||||||||||||
Payments for Sprint Cancellations(a)(c) |
48 | 106 | 6 | 10 | (44) | ||||||||||||||||||||||||
Non-renewals associated with Sprint Cancellations(a)(c) |
(2) | (6) | (6) | (7) | (6) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings(a) |
39 | 104 | 12 | 22 | (25) | ||||||||||||||||||||||||
Straight-lined revenues | — | (4) | 1 | 2 | 2 | ||||||||||||||||||||||||
Amortization of prepaid rent | 65 | 121 | 66 | 75 | 65 | ||||||||||||||||||||||||
Acquisitions(d) |
— | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Total site rental revenues | $ | 543 | $ | 648 | $ | 503 | $ | 524 | $ | 520 | |||||||||||||||||||
Year-over-year changes in revenues: | |||||||||||||||||||||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
8.4 | % | 32.5 | % | 3.9 | % | 6.5 | % | (4.2) | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(a) |
(1.6) | % | 0.8 | % | 3.0 | % | 4.4 | % | 5.8 | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(a) |
8.8 | % | 24.3 | % | 2.9 | % | 5.1 | % | (5.3) | % |
FIBER SEGMENT SUMMARY OF CAPITAL EXPENDITURES(a) | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Discretionary capital expenditures |
272 | 298 | 273 | 288 | 259 | ||||||||||||||||||||||||
Sustaining capital expenditures | 7 | 8 | 14 | 15 | 14 | ||||||||||||||||||||||||
Total capital expenditures | 279 | 306 | 287 | 303 | 273 | ||||||||||||||||||||||||
Less: Prepaid rent additions(e) |
59 | 59 | 55 | 83 | 56 | ||||||||||||||||||||||||
Capital expenditures less prepaid rent additions | $ | 220 | $ | 247 | $ | 232 | $ | 220 | $ | 217 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
FIBER SEGMENT REVENUE DETAIL BY LINE OF BUSINESS | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(dollars in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Small Cells | |||||||||||||||||||||||||||||
Site rental revenues: | |||||||||||||||||||||||||||||
Site rental billings(a) |
$ | 113 | $ | 211 | $ | 113 | $ | 118 | $ | 126 | |||||||||||||||||||
Amortization of prepaid rent | 48 | 102 | 45 | 53 | 45 | ||||||||||||||||||||||||
Straight-lined revenues | (1) | (6) | (1) | (1) | (1) | ||||||||||||||||||||||||
Total site rental revenues | 160 | 308 | 157 | 170 | 170 | ||||||||||||||||||||||||
Services and other revenues | 3 | 15 | 3 | 6 | 7 | ||||||||||||||||||||||||
Net revenues | $ | 163 | $ | 323 | $ | 160 | $ | 176 | $ | 177 | |||||||||||||||||||
Components of changes in site rental revenues: | |||||||||||||||||||||||||||||
Prior year site rental billings(a)(b) |
$ | 108 | $ | 109 | $ | 109 | $ | 111 | $ | 113 | |||||||||||||||||||
Core leasing activity(a) |
6 | 6 | 8 | 9 | 17 | ||||||||||||||||||||||||
Escalators | 2 | 2 | 2 | 2 | 2 | ||||||||||||||||||||||||
Non-renewals(a) |
(3) | (2) | (1) | (1) | (1) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) |
5 | 5 | 8 | 10 | 18 | ||||||||||||||||||||||||
Payments for Sprint Cancellations(a)(c) |
— | 101 | — | 2 | — | ||||||||||||||||||||||||
Non-renewals associated with Sprint Cancellations(a)(d) |
— | (4) | (5) | (5) | (5) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings(a) |
5 | 102 | 3 | 7 | 13 | ||||||||||||||||||||||||
Straight-lined revenues | (1) | (6) | (1) | (1) | (1) | ||||||||||||||||||||||||
Amortization of prepaid rent | 48 | 102 | 45 | 53 | 45 | ||||||||||||||||||||||||
Acquisitions(e) |
— | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Total site rental revenues | $ | 160 | $ | 308 | $ | 157 | $ | 170 | $ | 170 | |||||||||||||||||||
Year-over-year changes in revenues: | |||||||||||||||||||||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
3.2 | % | 97.4 | % | 1.9 | % | 5.6 | % | 6.3 | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(a) |
4.5 | % | 5.0 | % | 7.3 | % | 9.1 | % | 16.3 | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(a) |
4.5 | % | 93.6 | % | 3.1 | % | 6.7 | % | 11.8 | % |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
FIBER SEGMENT REVENUE DETAIL BY LINE OF BUSINESS CONTINUED | |||||||||||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||||||||
(dollars in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Fiber Solutions | |||||||||||||||||||||||||||||
Site rental revenues: | |||||||||||||||||||||||||||||
Site rental billings(a) |
$ | 365 | $ | 320 | $ | 323 | $ | 330 | $ | 327 | |||||||||||||||||||
Amortization of prepaid rent | 17 | 19 | 20 | 22 | 20 | ||||||||||||||||||||||||
Straight-lined revenues | 1 | 2 | 2 | 3 | 3 | ||||||||||||||||||||||||
Total site rental revenues | 383 | 340 | 346 | 354 | 350 | ||||||||||||||||||||||||
Services and other revenues | — | — | 1 | — | — | ||||||||||||||||||||||||
Net revenues | $ | 383 | $ | 340 | $ | 347 | $ | 354 | $ | 350 | |||||||||||||||||||
Components of changes in site rental revenues: | |||||||||||||||||||||||||||||
Prior year site rental billings excluding payments for Sprint Cancellations(a) |
$ | 331 | $ | 318 | $ | 315 | $ | 316 | $ | 318 | |||||||||||||||||||
Prior year payments for Sprint Cancellations(a)(b) |
— | — | — | — | 48 | ||||||||||||||||||||||||
Prior year site rental billings(a) |
$ | 331 | $ | 318 | $ | 315 | $ | 316 | $ | 366 | |||||||||||||||||||
Core leasing activity(a) |
19 | 30 | 34 | 37 | 35 | ||||||||||||||||||||||||
Escalators | — | — | — | — | — | ||||||||||||||||||||||||
Non-renewals(a) |
(31) | (32) | (29) | (29) | (29) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations(a) |
(12) | (2) | 5 | 8 | 6 | ||||||||||||||||||||||||
Payments for Sprint Cancellations(a)(c) |
48 | 5 | 6 | 8 | (44) | ||||||||||||||||||||||||
Non-renewals associated with Sprint Cancellations(a)(c) |
(2) | (2) | (2) | (2) | (1) | ||||||||||||||||||||||||
Organic Contribution to Site Rental Billings(a) |
34 | 1 | 9 | 14 | (39) | ||||||||||||||||||||||||
Straight-lined revenues | 1 | 2 | 2 | 3 | 3 | ||||||||||||||||||||||||
Amortization of prepaid rent | 17 | 19 | 20 | 22 | 20 | ||||||||||||||||||||||||
Acquisitions(d) |
— | — | — | — | — | ||||||||||||||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||||||||
Total site rental revenues | $ | 383 | $ | 340 | $ | 346 | $ | 354 | $ | 350 | |||||||||||||||||||
Year-over-year changes in revenues: | |||||||||||||||||||||||||||||
Site rental revenues as a percentage of prior year site rental revenues |
10.7 | % | 2.1 | % | 4.8 | % | 6.9 | % | (8.6) | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as Adjusted for Impact of Sprint Cancellations as a percentage of prior year site rental billings excluding payments for Sprint Cancellations(a) |
(3.6) | % | (0.7) | % | 1.5 | % | 2.7 | % | 2.1 | % | |||||||||||||||||||
Organic Contribution to Site Rental Billings as a percentage of prior year site rental billings(a) |
10.2 | % | 0.4 | % | 2.8 | % | 4.5 | % | (10.6) | % |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
FIBER SEGMENT PORTFOLIO HIGHLIGHTS | |||||
(as of March 31, 2024) |
|||||
Number of route miles of fiber (in thousands) | 90 | ||||
Number of small cells on air or under contract (in thousands) |
115 | ||||
Remaining contracted tenant receivables (in billions)(a) |
$ | 5 | |||
Weighted average remaining tenant contract term (years)(a)(b) |
4 |
FIBER SEGMENT CASH YIELD ON INVESTED CAPITAL(c) | |||||||||||
(as of March 31, 2024; dollars in millions) |
Q1 2024 LQA |
Q1 2023 LQA |
|||||||||
Segment site rental gross margin(d) |
$ | 1,352 | $ | 1,484 | |||||||
Less: Amortization of prepaid rent | (260) | (260) | |||||||||
Less: Straight-lined revenues | (8) | — | |||||||||
Add: Straight-lined expenses | — | — | |||||||||
Add: Indirect labor costs(e) |
118 | 118 | |||||||||
Numerator | $ | 1,202 | $ | 1,342 | |||||||
Segment net investment in property and equipment(f) |
$ | 9,729 | $ | 8,896 | |||||||
Segment investment in site rental contracts and tenant relationships | 3,290 | 3,290 | |||||||||
Segment investment in goodwill(g) |
4,080 | 4,080 | |||||||||
Segment Net Invested Capital(c) |
$ | 17,099 | $ | 16,266 | |||||||
Segment Cash Yield on Invested Capital(c) |
7.0 | % | 8.3 | % |
FIBER SOLUTIONS REVENUE MIX | |||||
(as of March 31, 2024) |
Percentage of Q1 2024 LQA Site Rental Revenues |
||||
Carrier(h) |
36% | ||||
Education | 14% | ||||
Healthcare | 11% | ||||
Financial Services | 7% | ||||
Other | 32% | ||||
Total | 100% |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) | |||||||||||
(in millions, except par values) | March 31, 2024 | December 31, 2023 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 125 | $ | 105 | |||||||
Restricted cash and cash equivalents |
168 | 171 | |||||||||
Receivables, net | 380 | 481 | |||||||||
Prepaid expenses | 130 | 103 | |||||||||
Deferred site rental receivables | 123 | 116 | |||||||||
Other current assets | 51 | 56 | |||||||||
Total current assets | 977 | 1,032 | |||||||||
Deferred site rental receivables | 2,292 | 2,239 | |||||||||
Property and equipment, net | 15,677 | 15,666 | |||||||||
Operating lease right-of-use assets | 5,990 | 6,187 | |||||||||
Goodwill | 10,085 | 10,085 | |||||||||
Other intangible assets, net | 3,073 | 3,179 | |||||||||
Other assets, net | 137 | 139 | |||||||||
Total assets | $ | 38,231 | $ | 38,527 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 216 | $ | 252 | |||||||
Accrued interest | 160 | 219 | |||||||||
Deferred revenues | 514 | 605 | |||||||||
Other accrued liabilities | 279 | 342 | |||||||||
Current maturities of debt and other obligations | 854 | 835 | |||||||||
Current portion of operating lease liabilities | 313 | 332 | |||||||||
Total current liabilities | 2,336 | 2,585 | |||||||||
Debt and other long-term obligations | 22,560 | 22,086 | |||||||||
Operating lease liabilities | 5,397 | 5,561 | |||||||||
Other long-term liabilities | 1,890 | 1,914 | |||||||||
Total liabilities | 32,183 | 32,146 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders' equity: | |||||||||||
Common stock, 0.01 par value; 1,200 shares authorized; shares issued and outstanding: March 31, 2024—435 and December 31, 2023—434 |
4 | 4 | |||||||||
Additional paid-in capital | 18,310 | 18,270 | |||||||||
Accumulated other comprehensive income (loss) | (5) | (4) | |||||||||
Dividends/distributions in excess of earnings | (12,261) | (11,889) | |||||||||
Total equity | 6,048 | 6,381 | |||||||||
Total liabilities and equity | $ | 38,231 | $ | 38,527 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions, except per share amounts) | 2024 | 2023 | |||||||||
Net revenues: | |||||||||||
Site rental | $ | 1,588 | $ | 1,624 | |||||||
Services and other | 53 | 149 | |||||||||
Net revenues | 1,641 | 1,773 | |||||||||
Operating expenses: | |||||||||||
Costs of operations:(a) |
|||||||||||
Site rental | 430 | 415 | |||||||||
Services and other | 34 | 104 | |||||||||
Selling, general and administrative | 183 | 195 | |||||||||
Asset write-down charges | 6 | — | |||||||||
Depreciation, amortization and accretion | 439 | 431 | |||||||||
Restructuring charges | 11 | — | |||||||||
Total operating expenses | 1,103 | 1,145 | |||||||||
Operating income (loss) | 538 | 628 | |||||||||
Interest expense and amortization of deferred financing costs, net | (226) | (202) | |||||||||
Interest income | 4 | 2 | |||||||||
Other income (expense) | 2 | (3) | |||||||||
Income (loss) before income taxes | 318 | 425 | |||||||||
Benefit (provision) for income taxes | (7) | (7) | |||||||||
Net income (loss) | $ | 311 | $ | 418 | |||||||
Net income (loss), per common share: | |||||||||||
Basic | $ | 0.72 | $ | 0.97 | |||||||
Diluted | $ | 0.71 | $ | 0.97 | |||||||
Weighted-average common shares outstanding: | |||||||||||
Basic | 434 | 433 | |||||||||
Diluted | 435 | 434 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) | |||||||||||
Three Months Ended March 31, | |||||||||||
(in millions) | 2024 | 2023 | |||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 311 | $ | 418 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||||||||||
Depreciation, amortization and accretion | 439 | 431 | |||||||||
(Gains) losses on retirement of long-term obligations | — | — | |||||||||
Amortization of deferred financing costs and other non-cash interest | 8 | 7 | |||||||||
Stock-based compensation expense, net | 38 | 41 | |||||||||
Asset write-down charges | 6 | — | |||||||||
Deferred income tax (benefit) provision | 4 | 1 | |||||||||
Other non-cash adjustments, net | 4 | 2 | |||||||||
Changes in assets and liabilities, excluding the effects of acquisitions: | |||||||||||
Increase (decrease) in liabilities | (238) | (183) | |||||||||
Decrease (increase) in assets | 27 | (111) | |||||||||
Net cash provided by (used for) operating activities | 599 | 606 | |||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | (320) | (341) | |||||||||
Payments for acquisitions, net of cash acquired | (1) | (67) | |||||||||
Other investing activities, net | 1 | 1 | |||||||||
Net cash provided by (used for) investing activities | (320) | (407) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of long-term debt | — | 999 | |||||||||
Principal payments on debt and other long-term obligations | (14) | (19) | |||||||||
Purchases and redemptions of long-term debt | — | — | |||||||||
Borrowings under revolving credit facility | — | 1,434 | |||||||||
Payments under revolving credit facility | (670) | (1,305) | |||||||||
Net borrowings (repayments) under commercial paper program | 1,138 | (524) | |||||||||
Payments for financing costs | — | (10) | |||||||||
Purchases of common stock | (27) | (28) | |||||||||
Dividends/distributions paid on common stock | (688) | (686) | |||||||||
Net cash provided by (used for) financing activities | (261) | (139) | |||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash and cash equivalents |
18 | 60 | |||||||||
Effect of exchange rate changes on cash | (1) | 1 | |||||||||
Cash and cash equivalents and restricted cash and cash equivalents at beginning of period |
281 | 327 | |||||||||
Cash and cash equivalents and restricted cash and cash equivalents at end of period |
$ | 298 | $ | 388 | |||||||
Supplemental disclosure of cash flow information: | |||||||||||
Interest paid | 282 | 249 | |||||||||
Income taxes paid (refunded) | — | (2) |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
SEGMENT OPERATING RESULTS | |||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2024 |
Three Months Ended March 31, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||
(in millions) | Towers | Fiber | Other | Total |
Towers | Fiber | Other | Total |
|||||||||||||||||||||||||||||||||||||||
Segment site rental revenues | $ | 1,068 | $ | 520 | $ | 1,588 | $ | 1,081 | $ | 543 | $ | 1,624 | |||||||||||||||||||||||||||||||||||
Segment services and other revenues | 46 | 7 | 53 | 146 | 3 | 149 | |||||||||||||||||||||||||||||||||||||||||
Segment revenues | 1,114 | 527 | 1,641 | 1,227 | 546 | 1,773 | |||||||||||||||||||||||||||||||||||||||||
Segment site rental costs of operations | 239 | 182 | 421 | 234 | 172 | 406 | |||||||||||||||||||||||||||||||||||||||||
Segment services and other costs of operations | 28 | 4 | 32 | 99 | 2 | 101 | |||||||||||||||||||||||||||||||||||||||||
Segment costs of operations(a)(b) |
267 | 186 | 453 | 333 | 174 | 507 | |||||||||||||||||||||||||||||||||||||||||
Segment site rental gross margin(c) |
829 | 338 | 1,167 | 847 | 371 | 1,218 | |||||||||||||||||||||||||||||||||||||||||
Segment services and other gross margin(c) |
18 | 3 | 21 | 47 | 1 | 48 | |||||||||||||||||||||||||||||||||||||||||
Segment selling, general and administrative expenses(b) |
21 | 47 | 68 | 31 | 49 | 80 | |||||||||||||||||||||||||||||||||||||||||
Segment operating profit(c) |
826 | 294 | 1,120 | 863 | 323 | 1,186 | |||||||||||||||||||||||||||||||||||||||||
Other selling, general and administrative expenses(b) |
$ | 84 | 84 | $ | 82 | 82 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense, net | 38 | 38 | 41 | 41 | |||||||||||||||||||||||||||||||||||||||||||
Depreciation, amortization and accretion | 439 | 439 | 431 | 431 | |||||||||||||||||||||||||||||||||||||||||||
Restructuring charges(d) |
11 | 11 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Interest expense and amortization of deferred financing costs, net | 226 | 226 | 202 | 202 | |||||||||||||||||||||||||||||||||||||||||||
Other (income) expenses to reconcile to income (loss) before income taxes(e) |
4 | 4 | 5 | 5 | |||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 318 | $ | 425 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
NON-GAAP MEASURES AND OTHER INFORMATION |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
2023 | 2024 | ||||||||||||||||||||||||||||
(in millions; totals may not sum due to rounding) |
Q1 | Q2 | Q3 | Q4 | Q1 | ||||||||||||||||||||||||
Net income (loss) | $ | 418 | $ | 445 | $ | 265 | $ | 361 | $ | 311 | |||||||||||||||||||
Adjustments to increase (decrease) net income (loss) | |||||||||||||||||||||||||||||
Asset write-down charges | — | 22 | 8 | 3 | 6 | ||||||||||||||||||||||||
Acquisition and integration costs | — | 1 | — | — | — | ||||||||||||||||||||||||
Depreciation, amortization and accretion | 431 | 445 | 439 | 439 | 439 | ||||||||||||||||||||||||
Restructuring charges(a) |
— | — | 72 | 13 | 11 | ||||||||||||||||||||||||
Amortization of prepaid lease purchase price adjustments | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||
Interest expense and amortization of deferred financing costs, net(b) |
202 | 208 | 217 | 223 | 226 | ||||||||||||||||||||||||
(Gains) losses on retirement of long-term obligations | — | — | — | — | — | ||||||||||||||||||||||||
Interest income | (2) | (5) | (3) | (5) | (4) | ||||||||||||||||||||||||
Other (income) expense | 3 | 2 | — | 2 | (2) | ||||||||||||||||||||||||
(Benefit) provision for income taxes | 7 | 7 | 7 | 5 | 7 | ||||||||||||||||||||||||
Stock-based compensation expense, net | 41 | 50 | 36 | 31 | 38 | ||||||||||||||||||||||||
Adjusted EBITDA(c)(d) |
$ | 1,104 | $ | 1,188 | $ | 1,047 | $ | 1,076 | $ | 1,036 |
(in millions; totals may not sum due to rounding) |
Full Year 2024 Outlook(f) |
||||||||||
Net income (loss) | $1,213 | to | $1,293 | ||||||||
Adjustments to increase (decrease) net income (loss): | |||||||||||
Asset write-down charges | $42 | to | $52 | ||||||||
Acquisition and integration costs | $0 | to | $6 | ||||||||
Depreciation, amortization and accretion | $1,680 | to | $1,775 | ||||||||
Restructuring charges(a) |
$0 | to | $15 | ||||||||
Amortization of prepaid lease purchase price adjustments | $15 | to | $17 | ||||||||
Interest expense and amortization of deferred financing costs, net(e) |
$933 | to | $978 | ||||||||
(Gains) losses on retirement of long-term obligations | $0 | to | $0 | ||||||||
Interest income | $(12) | to | $(11) | ||||||||
Other (income) expense | $0 | to | $9 | ||||||||
(Benefit) provision for income taxes | $20 | to | $28 | ||||||||
Stock-based compensation expense, net | $142 | to | $146 | ||||||||
Adjusted EBITDA(c)(d) |
$4,138 | to | $4,188 |
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
(in millions; totals may not sum due to rounding) |
2023 | 2024 | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||||||||||||
Net income (loss) | $ | 418 | $ | 455 | $ | 265 | $ | 361 | $ | 311 | |||||||||||||||||||
Real estate related depreciation, amortization and accretion | 417 | 424 | 425 | 426 | 425 | ||||||||||||||||||||||||
Asset write-down charges | — | 22 | 8 | 3 | 6 | ||||||||||||||||||||||||
FFO(a)(b) |
$ | 835 | $ | 901 | $ | 698 | $ | 790 | $ | 742 | |||||||||||||||||||
Weighted-average common shares outstanding—diluted | 434 | 434 | 434 | 434 | 435 | ||||||||||||||||||||||||
FFO (from above) | $ | 835 | $ | 901 | $ | 698 | $ | 790 | $ | 742 | |||||||||||||||||||
Adjustments to increase (decrease) FFO: | |||||||||||||||||||||||||||||
Straight-lined revenues | (83) | (80) | (59) | (51) | (59) | ||||||||||||||||||||||||
Straight-lined expenses | 20 | 18 | 18 | 17 | 17 | ||||||||||||||||||||||||
Stock-based compensation expense, net | 41 | 50 | 36 | 31 | 38 | ||||||||||||||||||||||||
Non-cash portion of tax provision | 9 | (6) | 4 | — | 7 | ||||||||||||||||||||||||
Non-real estate related depreciation, amortization and accretion |
14 | 21 | 14 | 13 | 14 | ||||||||||||||||||||||||
Amortization of non-cash interest expense | 4 | 4 | 3 | 3 | 3 | ||||||||||||||||||||||||
Other (income) expense | 3 | 2 | — | 2 | (2) | ||||||||||||||||||||||||
(Gains) losses on retirement of long-term obligations | — | — | — | — | — | ||||||||||||||||||||||||
Acquisition and integration costs | — | 1 | — | — | — | ||||||||||||||||||||||||
Restructuring charges(c) |
— | — | 72 | 13 | 11 | ||||||||||||||||||||||||
Sustaining capital expenditures | (15) | (18) | (21) | (28) | (22) | ||||||||||||||||||||||||
AFFO(a)(b) |
$ | 828 | $ | 891 | $ | 767 | $ | 790 | $ | 749 | |||||||||||||||||||
Weighted-average common shares outstanding—diluted | 434 | 434 | 434 | 434 | 435 | ||||||||||||||||||||||||
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
(in millions, except per share amounts; totals may not sum due to rounding) |
2023 | 2024 | |||||||||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | |||||||||||||||||||||||||
Net income (loss) | $ | 0.96 | $ | 1.05 | $ | 0.61 | $ | 0.83 | $ | 0.72 | |||||||||||||||||||
Real estate related depreciation, amortization and accretion | 0.96 | 0.98 | 0.98 | 0.98 | 0.98 | ||||||||||||||||||||||||
Asset write-down charges | — | 0.05 | 0.02 | 0.01 | 0.01 | ||||||||||||||||||||||||
FFO(a)(b) |
$ | 1.92 | $ | 2.08 | $ | 1.61 | $ | 1.82 | $ | 1.71 | |||||||||||||||||||
Weighted-average common shares outstanding—diluted | 434 | 434 | 434 | 434 | 435 | ||||||||||||||||||||||||
FFO (from above) | $ | 1.92 | $ | 2.08 | $ | 1.61 | $ | 1.82 | $ | 1.71 | |||||||||||||||||||
Adjustments to increase (decrease) FFO: | |||||||||||||||||||||||||||||
Straight-lined revenues | (0.19) | (0.18) | (0.14) | (0.12) | (0.14) | ||||||||||||||||||||||||
Straight-lined expenses | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | ||||||||||||||||||||||||
Stock-based compensation expense, net | 0.09 | 0.12 | 0.08 | 0.07 | 0.09 | ||||||||||||||||||||||||
Non-cash portion of tax provision | 0.02 | (0.01) | 0.01 | — | 0.02 | ||||||||||||||||||||||||
Non-real estate related depreciation, amortization and accretion | 0.03 | 0.05 | 0.03 | 0.03 | 0.03 | ||||||||||||||||||||||||
Amortization of non-cash interest expense | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||||||||||||||||
Other (income) expense | 0.01 | — | — | — | — | ||||||||||||||||||||||||
(Gains) losses on retirement of long-term obligations | — | — | — | — | — | ||||||||||||||||||||||||
Acquisition and integration costs | — | — | — | — | — | ||||||||||||||||||||||||
Restructuring charges(c) |
— | — | 0.17 | 0.03 | 0.03 | ||||||||||||||||||||||||
Sustaining capital expenditures | (0.03) | (0.04) | (0.05) | (0.06) | (0.05) | ||||||||||||||||||||||||
AFFO(a)(b) |
$ | 1.91 | $ | 2.05 | $ | 1.77 | $ | 1.82 | $ | 1.72 | |||||||||||||||||||
Weighted-average common shares outstanding—diluted | 434 | 434 | 434 | 434 | 435 | ||||||||||||||||||||||||
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
(in millions; totals may not sum due to rounding) |
Full Year 2024 Outlook(c) |
||||||||||
Net income (loss) | $1,213 | to | $1,293 | ||||||||
Real estate related depreciation, amortization and accretion | $1,634 | to | $1,714 | ||||||||
Asset write-down charges | $42 | to | $52 | ||||||||
FFO(a)(b) |
$2,951 | to | $2,996 | ||||||||
Weighted-average common shares outstanding—diluted | 435 | ||||||||||
FFO (from above) | $2,951 | to | $2,996 | ||||||||
Adjustments to increase (decrease) FFO: | |||||||||||
Straight-lined revenues | $(197) | to | $(177) | ||||||||
Straight-lined expenses | $55 | to | $75 | ||||||||
Stock-based compensation expense, net | $142 | to | $146 | ||||||||
Non-cash portion of tax provision | $2 | to | $17 | ||||||||
Non-real estate related depreciation, amortization and accretion | $46 | to | $61 | ||||||||
Amortization of non-cash interest expense | $9 | to | $19 | ||||||||
Other (income) expense | $0 | to | $9 | ||||||||
(Gains) losses on retirement of long-term obligations | $0 | to | $0 | ||||||||
Acquisition and integration costs | $0 | to | $6 | ||||||||
Restructuring charges(d) |
$0 | to | $15 | ||||||||
Sustaining capital expenditures | $(85) | to | $(65) | ||||||||
AFFO(a)(b) |
$2,980 | to | $3,030 | ||||||||
Weighted-average common shares outstanding—diluted | 435 |
(in millions, except per share amounts; totals may not sum due to rounding) |
Full Year 2024 Outlook Per Share(c) |
||||||||||
Net income (loss) | $2.79 | to | $2.97 | ||||||||
Real estate related depreciation, amortization and accretion | $3.76 | to | $3.94 | ||||||||
Asset write-down charges | $0.10 | to | $0.12 | ||||||||
FFO(a)(b) |
$6.78 | to | $6.89 | ||||||||
Weighted-average common shares outstanding—diluted | 435 | ||||||||||
FFO (from above) | $6.78 | to | $6.89 | ||||||||
Adjustments to increase (decrease) FFO: | |||||||||||
Straight-lined revenues | $(0.45) | to | $(0.41) | ||||||||
Straight-lined expenses | $0.13 | to | $0.17 | ||||||||
Stock-based compensation expense, net | $0.33 | to | $0.34 | ||||||||
Non-cash portion of tax provision | $0.00 | to | $0.04 | ||||||||
Non-real estate related depreciation, amortization and accretion | $0.11 | to | $0.14 | ||||||||
Amortization of non-cash interest expense | $0.02 | to | $0.04 | ||||||||
Other (income) expense | $0.00 | to | $0.02 | ||||||||
(Gains) losses on retirement of long-term obligations | $0.00 | to | $0.00 | ||||||||
Acquisition and integration costs | $0.00 | to | $0.01 | ||||||||
Restructuring charges(d) |
$0.00 | to | $0.03 | ||||||||
Sustaining capital expenditures | $(0.20) | to | $(0.15) | ||||||||
AFFO(a)(b) |
$6.85 | to | $6.97 | ||||||||
Weighted-average common shares outstanding—diluted | 435 | ||||||||||
COMPANY OVERVIEW |
OUTLOOK | CONSOLIDATED FINANCIALS | CAPITALIZATION OVERVIEW | TOWERS SEGMENT | FIBER SEGMENT | APPENDIX |
(as of March 31, 2024; dollars in millions) |
|||||
Total debt and other obligations (current and non-current) | $ | 23,414 | |||
Unamortized adjustments, net | 161 | ||||
Total face value of debt | 23,575 | ||||
Less: Ending cash and cash equivalents and restricted cash and cash equivalents |
298 | ||||
Net Debt(a) |
$ | 23,277 | |||
Adjusted EBITDA for the three months ended March 31, 2024(a) |
$ | 1,036 | |||
Last quarter annualized Adjusted EBITDA(a) |
4,144 | ||||
Net debt to Last Quarter Annualized Adjusted EBITDA(a) |
5.6 | x |