Crown Castle International
NYSE: CCI
Cautionary Information
This presentation contains forward-looking statements that are based on management’s current expectations. Such statements include, but
are not limited to plans, projections and estimates regarding (i) our results of operations, (ii) growth potential of the U.S. market, (iii)
wireless capital expenditures and network development, (iv) demand, factors driving demand and components of demand, (v) incremental
return on equity capital from leasing growth, (vi) site rental revenue, (vii) site rental cost of operations, (viii) site rental gross margin, (ix)
Adjusted EBITDA, (x) interest expense and amortization of deferred financing costs, (xi) sustaining capital expenditures, (xii) recurring cash
flow (including recurring cash flow per share) and (xiii) net loss (including net loss per share).
Such forward-looking statements are subject to numerous risks, uncertainties and assumptions, including prevailing market conditions and
other factors. Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual
results may vary materially from those expected. More information about potential risk factors which could affect our results is included in
our filings with the Securities and Exchange Commission. The Company assumes no obligation to update publicly any forward-looking
statements, whether as a result of new information, future events or otherwise.
This presentation includes certain non-GAAP financial measures, including recurring cash flow and Adjusted EBITDA. Tables reconciling such
non-GAAP financial measures are available at the end of this presentation and under the investor section of Crown Castle’s website at
www.crowncastle.com.
This presentation includes historical financial results from Global Signal. These results are unaudited, and therefore, are subject to change.
2
Overview
Section 1
Crown Castle International
Real estate provider to the wireless industry
4
Attractive Business Fundamentals
• High incremental margins on new revenue
• Minimal sustaining capital expenditure requirements
– Approximately $21 million of expected annual sustaining capital
expenditures
• Majority of outstanding debt rated investment grade and fixed rate coupon
• Long-term goal of 20% - 25% annual growth in recurring cash flow per share(1)
• Potential to achieve additional growth and value from complementary
investments
(1) Recurring cash flow per share is defined as Adjusted EBITDA less interest expense and amortization of deferred financing costs less sustaining
capital expenditures divided by common shares outstanding
5
Consistent Results(1,2)
($ in millions)
$307
$269
$276
$283
$311
$316
$292
$225
$189
$195
$165
$173
$180
$184
Q1:06
Q2:06
$196
$199
$202
Q3:06
Q4:06
Q1:07
$146
$126
$131
Q4:04
Q1:05
Q2:05
Q3:05
Q4:05
Site Rental Revenue
Site Rental Gross Margin
(1) Site Rental Gross margin is defined as site rental revenue less site rental cost of operations
(2) Pro forma for GSL acquisition; these pro forma results are presented for illustrative purposes only and do not reflect what actual results would have been in
historical periods.
6
Business Overview
•
Q1 ‘07 Tower Revenue
Primary business is leasing tower space
to wireless operators under long-term
leases
–
Recurring in nature and produces
approximately 95% of revenue, 98%
of gross margin and nearly 100% of
cash flow
–
Approximately 80% of recurring
revenue from investment-grade
rated tenants
US 95%
AUS 5%
•
Annualized = $1.3 billion
Secondary service business
–
Non-recurring in nature, primarily
related to the installation of new
tenants on towers
–
Minimal cash flow
7
U.S. Tower Footprint
Over 22,000 U.S. Towers
Significant Presence in 91 of the Top 100 BTA’s(1)
(1) Basic Trading Areas as defined by Rand McNally & Co and as used by
the FCC to determine service areas for PCS wireless licenses
8
The Leading U.S. Tower Operator
U.S. Wireless Towers
• 72% of towers in the top 100 BTA’s
–
–
Top 100 BTA’s represent 74% of US
POPs
Higher proportion of expected
carrier capex spending
• Over 3,100 more towers in the top
≈22,000
≈20,000
Other
Top 100
Top 50
≈5,500
100 BTA’s than nearest competitor
66% with Verizon, AT&T
(formerly Cingular) or Sprint as the
anchor tenant
• ≈
% of Towers
CCI
(2)
AMT(1)
SBAC
Top 50 BTA’s
55%
47%
27%
Top 100 BTA’s
72%
66%
49%
(1) Towers based on public information for AMT as of January 10, 2007
Citigroup presentation
(2) Towers based on public information for SBAC as of Q4 2006
9
U.S. Operational Overview
Business Overview
Annualized Site Rental Revenue(3)
Other Wireless
Telephony
• #1 tower operator in the U.S.(1)
• 22,264 wireless towers
• 2007 Outlook(2):
– $1.3 Bn site rental revenue
– $743 mm Adjusted EBITDA
13%
Other
12%
Big 4 Wireless
Carriers
75%
– $370 mm recurring cash flow
(1) Based on number of towers, exclusive of rooftops
(2) Mid-point of outlook issued on May 2, 2007
(3) Run-rate site rental revenue based on licenses as of April 2007
10
High-Quality Revenues
Highest Exposure to Leading
US Wireless Carriers(2)
• Diversified, high-quality revenues
Big 4 Site Rental Revenue Per Tower(3)
• 88%(1) wireless telephony
($ in thousands)
• 80%(1) investment grade revenues
$40.5
$36.4
CCI
AMT
75%
59%
$33.3
SBA
(4)
Big 4 as a
(1) Run-rate site rental revenue based on licenses as of
April 30, 2007
(2) Verizon, AT&T (formerly Cingular), T-Mobile, Sprint
(3) Revenue based on Q1 2007 results and total wireless towers
(4) Information only available for Sprint, AT&T (formerly Cingular), and Verizon
% of Site
62%
Rental Revenue
11
Opportunity For Growth
Drivers of Future Site Demand
• Carrier focus on improving network
quality
• Subscriber growth
• Increasing usage (voice MOU, data)
• Wireline replacement
• Next generation network builds
► AWS auctions
► Sprint 4G
► WiMax builds
Crown Castle is Best Positioned
• Most towers in the top 50 and top 100
BTA’s
• Portfolio comprised primarily of
acquired towers from Verizon, AT&T
(formerly Cingular), Sprint and T-Mobile
• Strong relationships with Metro PCS,
Leap, ClearWire and other emerging
carriers
• Significant opportunity for increased
lease up on acquired towers
– Leverage Crown Castle’s proprietary
leasing demand tools and industryleading customer service
12
Significant Wireless Network Spending
Estimated Wireless Capital Expenditures
$ in billions
$28
$27
$27
• Growth in MOUs drives the need for
additional sites
$27
• Decreases in equipment costs allow
for more deployed sites with similar
levels of capital expenditures
• Improved network quality reduces
subscriber churn
2007E
2008E
2009E
2010E
Source: Goldman Sachs Research estimates
13
US Market Opportunities
• US market offers significant
Mobile Penetration (%)(1)
growth potential:
2010 E
87%
– Large population
72%
2006
Estimated annual wireless network MOUs
In billions (CAGR = 21%)
(2,3)
– High expected growth in wireless
network MOUs
3,658
2010 E
2006
– Relatively low wireless penetration
1,797
Source: Goldman Sachs research estimates
(1)TIA pulse online
(2) Numbers represent estimates of big 4 wireless carriers (VZW, AT&T
(formerly Cingular), Sprint, T-Mobile)
(3) 2006 is full year ending December 31, 2006; source is CTIA research
14
Large Investments at Spectrum Auction
Translates to Potential Revenue Growth
The deployment of the additional spectrum from Auction 66 is expected to drive additional leasing on wireless
towers.
Total
Investment
T-Mobile (2)
$4.2 billion
Verizon Wireless
$2.8 billion
Sprint w/ Cable
Consortium
$2.4 billion
MetroPCS
$1.4 billion
AT&T (formerly Cingular)
$1.3 billion
Leap Wireless
$1.0 billion
Footprint
Expansion(1)
New Broadband
Strategy
Capacity/Coverage
Improvements for
existing 3G platforms
x
x
x
x
x
x
Source: Goldman Sachs Research January 3, 2007
(1) The carriers plan to use a significant portion of the acquired spectrum to continue their build-out strategy which is focused on unlimited calling plans in dense urban
areas.
(2) T-Mobile plans to use the spectrum won for 3G deployment throughout its footprint coupled with deployment already underway.
15
CCIsites
CCIsites is a web-based tool that stores the key information on
our towers
• Includes:
– Tenant leases
– Ground leases
Normal Real Estate Information
– Regulatory information
– RF signal strength by carrier
– Demographic data
– Site readiness
CCI Advantage
– Competitive structures
16
Capital Allocation
and Structure
Section 2
Significant Share Purchases
($ in millions)
CCI
Total
recurring
cash flow
’03 to Q1
’07(3)
$572
•Crown Castle has invested
3.6x of its recurring cash
flow in share purchases
over the last four years at
an average price of $24.32
per share
AMT
$1,321
SBAC
$149
CCI
83.8 mm shares
Share
Purchases
’03 to Q1
’07(3)
29.3 mm
shares
3.2 mm
shares
AMT
$1,039
SBAC
$91
(1,2)
$2,039
•Strong growth in Adjusted
EBITDA combined with
maintaining approximately
7x debt leverage has
created significant capacity
for investment
(1) Includes purchases of 4% Convertible Notes and 8 1/4 % Convertible Preferred Stock
(2) Includes purchase of 17.7 million shares on 1/26/2007 using $600 million in cash
(3) Total recurring cash flow and share purchases from 2003 to Q1 2007
18
Best Positioned to Capture Future Value
from Leasing Growth
Common Shares per Tower(1)
Equity Capital per Tower(1)
(in thousands)
18.7
($ in thousands)
$730
18.0
$552
11.9
CCI
$404
AMT
SBA
Incremental Cash Flow/ Share
$1.52
$0.96
Impact of the
addition of one
tenant per tower
(circa $18k of
lease revenue
per tower)(2)
CCI
AMT
SBA
Incremental Return on Equity Capital
$1.00
4.5%
2.5%
3.3%
(1) Based on shares outstanding as of March 31, 2007; closing share prices as of 5/7/2007
(2) Impact assumes 100% incremental margin on additional tenant
19
Optimized Capital Structure
Debt Comparison with Peers
($ in billions)
• ≈ 81% of Crown Castle’s debt is rated investment
grade
$6.0
• ≈ 90% of Crown Castle’s debt is fixed rate debt
–
$3.5
90% of debt outstanding is not exposed to
interest rate fluctuations until at least
$4.8
January 2015
Investment
Grade
Rated Debt
$1.6
–
Crown Castle’s approach to effectively
utilizing its balance sheet for growth
CCI
Net Debt /
Adj. EBITDA(1)
Average
Interest Rate
Total Debt/
Enterprise
Value`
AMT
SBA
3.7x
6.8x
opportunities and share repurchases remains
unchanged
8.8x
5.9%(2)
37%
6.0%(2)
5.9%(3)
18%
35%(3)
(1) Annualized Q1 2007E
(2) Annualized Q1 2007 interest expense / Q1 2007 total debt (AMT); annualized Q2
2007E interest expense / Q1 2007 total debt (CCI)
(3) Excludes $350 million convertible notes at 0.375% interest rate issued on
March 26, 2007; average interest rate is solely based on CMBS Issuances.
20
Capitalization Summary
($ in millions)
Debt Summary
Sr. Secured Twr Revenue Notes, Series 2006-1
Sr. Secured Twr Revenue Notes, Series 2005-1
Feb. '06 Mortgage Loan
Dec. '04 Mortgage Loan
Bonds
Term Loan
Total Outstanding Debt
$1,550
5.7%
$1,900
4.9%
$1,550
5.7%
$294
4.7%
$64
4.0%
$650 LIBOR + 150
$6,008
Total Company
Total Debt
$6,008
Net Debt
(1)
Q2 '07E Annual Adjusted EBITDA
$5,884
(2)
Net Debt / Annualized Adjusted EBITDA
Full Year 2007E Interest Expense
Total Capitalization
Debt 37%
Equity 61%
$710
(2)
(2)
Interest Coverage (2)
8.3X
Preferreds
$348
2%
2.0X
(1) Excludes $313 mm of 6 ¼ % Convertible Preferred Stock
(2) Based on outlook issued May 2, 2007
21
Recurring Cash Flow Per Share
• Since 2001:
Recurring Cash Flow per Share(2)
$1.23
– Site rental revenues increased
$1.31
98%(1)
$0.86
– Site rental gross margin increased
140%(1)
– Average interest coupon of 5.9%
$0.32
compared to 9% in Q4 2001
• Focus on recurring cash flow
per share
– Long-term targeted growth rate of
20% to 25%
($0.11)
($0.37)
2001
($0.31)
2002
2003
2004
2005
2006 2007E
(1) CCI – pre GSL
(2) Years 2001 to 2006 based on CCI results pre- GSL; 2007 based on Outlook issued
on 5/2/2007
22
Impact of Additional Leverage to
2007 RCF per Share
25%
Growth
$0.31
Impact of $1.15 B
borrowings to pay
cash consideration for
GSL acquisition and
purchase of 17.7 mm
shares
$1.31
$1.23
•Committed to decisions that
management believes will
maximize long-term recurring cash
flow per share
•Near-term dilution in favor of
enhanced long-term growth rates
$(0.23)
•Decisions based on long-term
outlook for site rental revenue and
Adjusted EBITDA growth
2006
RCF/Share
RCF/Share
RCF/Share impact from
growth from
additional borrowings
2007E RCF/Share(1)
operations
* Based on average shares outstanding
(1) Based on midpoint of Outlook issued on 5/2/2007
23
Components of Future RCF per Share
2006 RCF per share of $1.23
+
Anticipated
+
Measured Demand
§
§
1.25 tenants / tower of
measured need
Estimated incremental
$1.70 per share of RCF
=
Future Demand
+
Invested Capital
§
MOU growth
§
Tower acquisitions
§
Subscriber growth
§
Tower builds
§
Data usage growth
§
Stock purchases
§
Wireline
replacement
§
Land purchases
Future RCF per Share
24
2007 Outlook
$ in millions
Q2 2007
Full Year 2007
Site rental revenue
$316 to 321
$1,265 to 1,280
Site rental cost of operations(1)
$115 to 120
$440 to 450
Site rental gross margin
$199 to 204
$820 to 830
Adjusted EBITDA
$175 to 180
$735 to 750
$88 to 90
$346 to 351
$6 to 8
$19 to 23
$80 to 85
$365 to 375
Interest expense and amortization of deferred financing costs
Sustaining capital expenditures
Recurring cash flow
(1) Exclusive of depreciation, amortization and accretion
25
CCI’s Compelling Business Model
1.
Growth based on wireless network
expansion
2.
Long-term contracted revenue with
contracted escalations
3.
High credit quality of revenue stream
4.
Long-term control of assets
5.
Relatively fixed operating costs
6.
Minimal required CapEx
7.
Significant internally generated
Highly efficient capital
structure converts growth and
investment into recurring cash
flow per share
capital
26
Non-GAAP Financial Measures
On January 12, 2007, Crown Castle completed the merger ("Global Signal Merger") of Global Signal Inc. ("Global Signal") with and into a wholly-owned subsidiary of ours. Unless indicated otherwise,
the term "Crown Castle" refers to Crown Castle International Corp. and it subsidiaries, including the former subsidiaries of Global Signal ("Global Signal Entities") following the completion of
the Global Signal Merger. The results of Global Signal Entities were included in our consolidated statement of operations and comprehensive income (loss) from January 12, 2007.
NON-GAAP FINANCIAL MEASURES
Certain of Crown Castle's financial releases and broadcast conference calls include presentations or discussions of recurring cash flow and Adjusted EBITDA,
which are non-GAAP financial measures. Crown Castle defines Adjusted EBITDA as net income (loss) plus restructuring charges (credits), asset write-down charges,
integration costs (inclusive of stock-based compensation charges), depreciation, amortization and accretion, losses on purchases and redemptions of debt, interest
and other income (expense), interest expense and amortization of deferred financing costs, benefit (provision) for income taxes, minority interests, cumulative
effect of change in accounting principle, income (loss) from discontinued operations and stock-based compensation charges. Adjusted EBITDA is not intended as an
alternative measure of cash flow from operations or operating results (as determined in accordance with Generally Accepted Accounting Principles (GAAP)).
Crown Castle defines recurring cash flow to be Adjusted EBITDA, less interest expense and less sustaining capital expenditures. Each of the amounts included in the calculation of recurring
cash flow are computed in accordance with GAAP, with the exception of sustaining capital expenditures, which is not defined under GAAP. Sustaining capital expenditures are defined as
capital expenditures (determined in accordance with GAAP) which do not increase the capacity or term of an asset. Recurring cash flow is not intended as an alternative measure of cash flow
from operations or operating results (as determined in accordance with GAAP). Recurring cash flow per share is not intended to be an alternative measure of earnings per share.
Adjusted EBITDA and recurring cash flow are presented as additional information because management believes these measures are useful indicators of the financial performance of our
core businesses. In addition, Adjusted EBITDA is a measure of current financial performance used in our debt covenant calculations. Our measures of Adjusted EBITDA and recurring cash
flow may not be comparable to similarly titled measures of other companies, including companies in the tower industry and in the historical financial statements of Global Signal. The tables
set forth below reconcile these non-GAAP financial measures to comparable GAAP financial measures.
Cautionary Language Regarding Forward-Looking Statements
These forward-looking statements and reconciliations contain forward-looking information that are based on our management's current expectations.
Such forward-looking statements are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing market conditions and other factors. Should
one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expected. More
information about potential risk factors which could affect our results is included in our filings with the SEC.
27
Non-GAAP Financial Measures
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES
Historical Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures:
Adjusted EBITDA, recurring cash flow, and recurring cash flow per share for Crown Castle for the years ended December 31, 2001, December 31, 2002, December 31, 2003, December 31, 2004, December 31, 2005 and December 31, 2006
are computed as follows:
December 31, 2001
(in thousands, except per share amounts)
Net income (loss)
Restructuring charges (credits)
Asset write-down charges
Integration costs
$
(1)
Adjusted EBITDA
(396,607) $
17,577
13,024
262,042
(2,489)
270,766
465
(9,724)
45,158
Depreciation, amortization and accretion
Losses on purchases and redemption of debt
Interest and other income (expense)
Interest expense and amortization of deferred financing costs
Benefit (provision) for income taxes
Minority interests
Cumulative effect of change in accounting principle
Income (loss) from discontinued operations, net of tax
Stock-based compensation charges (2)
$
Less: Interest expense and amortization of deferred financing costs
Less: Sustaining capital expenditures
3,488
203,700
Twelve Months Ended
December 31, 2003
December 31, 2004
December 31, 2002
(316,332) $
8,665
52,598
276,479
(79,138)
14,214
273,842
4,407
(11,770)
(7,340)
$
270,766
12,000
3,488
219,113
(451,611) $
1,291
14,317
281,028
119,405
12,387
258,834
2,465
(3,992)
551
(4,430)
$
273,842
12,000
13,986
244,231
233,107
3,729
7,652
December 31, 2005
$
284,991
78,036
228
206,770
(5,370)
(398)
(534,688)
$
258,834
9,116
13,088
287,145
December 31, 2006
(401,537) $
8,477
2,925
281,118
283,797
(1,354)
133,806
3,225
(3,525)
9,031
(848)
$
206,770
9,795
19,947
335,062
(41,893)
(391)
2,945
1,503
285,244
5,843
1,629
162,328
843
(1,666)
(5,657)
$
133,806
13,845
16,718
427,446
162,328
9,306
Recurring cash flow
$
(79,066) $
(66,729) $
(23,719) $
70,580
$
187,411
$
255,812
Weighted average common shares outstanding
Recurring cash flow per share
$
214,246
(0.37) $
218,028
(0.31) $
216,947
(0.11) $
221,693
0.32
$
217,759
0.86
$
207,245
1.23
(1) Inclusive of stock-based compensation expense.
(2) Exclusive of stock-based compensation included in integration costs.
28
Non-GAAP Financial Measures
Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarters ending March 31, 2006 and March 31, 2007 are computed as follows:
For the Three Months Ended
March 31, 2006
March 31, 2007
Net income (loss)
Restructuring charges (credits)
Asset write-down charges
Integration costs (1)
Depreciation, amortization and accretion
Losses on purchases and redemptions of debt
Interest and other income (expense)
Interest expense, amortization of deferred financing costs
Benefit (provision) for income taxes
Minority interests
Cumulative effect of change in accounting principle
Income (loss) from discontinued operations, net of tax
Stock-based compensation charges (2)
Adjusted EBITDA
$
$
Less: Interest expense and amortization of deferred financing costs
Less: Sustaining capital expenditures
Recurring cash flow
Weighted Average Shares Outstanding
Recurring cash flow per share
(6,722) $
335
72,091
1,336
32,260
616
(911)
(5,657)
(42,891)
1,352
8,848
138,693
(3,299)
82,015
(22,162)
(217)
-
3,514
96,862
4,919
167,258
$
32,260
1,917
$
62,685
$
214,473
0.29
82,015
2,844
$
82,399
$
273,456
0.30
Site rental gross margin (tower gross margin) and annualized site rental gross margin for Global Signal for the quarter ended December 31, 2006 is computed as follows:
Three Months Ended
December 31, 2006
(in thousands)
Site rental revenue
Less: Site rental cost of operations (3)
Site rental gross margin
$
124,732
$
55,526
69,206
Annualized site rental gross margin
$
276,825
(1) Inclusive of stock-based compensation expense.
(2) Exclusive of stock-based compensation included in integration costs.
(3) Exclusive of amortization, depreciation and accretion
29
Non-GAAP Financial Measures
Outlook Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarter ending June 30, 2007 and the year ending December 31, 2007 are forecasted as follows:
Forecast Ranges
(in millions, except per share amounts)
Net income (loss)
Asset write-down charges
(1)
Integration costs
Depreciation, amortization and accretion
Losses on purchases and redemption of debt
Interest and other income (expense)
Interest expense and amortization of deferred financing costs
Benefit (provision) for income taxes
Minority interests
Income (loss) from discontinued operations, net of tax
(2)
Stock-based compensation charges
Adjusted EBITDA
Less: Interest expense and amortization of deferred financing costs
Less: Sustaining capital expenditures
Recurring cash flow
Shares outstanding as of 3/31/2007
Recurring cash flow per share
Q2 2007
Full Year 2007
$(61) to (24)
2 to 4
$(192) to (79)
5 to 10
7 to 10
132 to 142
(2) to 0
88 to 90
(27) to (17)
(1) to 0
-
24 to 33
530 to 570
(5) to (2)
346 to 351
(89) to (59)
(2) to 0
-
5 to 7
20 to 24
$175 to 180
$735 to 750
$88 to 90
6 to 8
$80 to 85
281.6
$0.28 to $0.30
$346 to 351
19 to 23
$365 to 375
281.6
$1.30 to $1.33
(1) Inclusive of stock-based compensation expense.
(2) Exclusive of stock-based compensation included in integration costs.
30
Other Calculations
OTHER CALCULATIONS:
Site rental gross margin (tower gross margin) for Crown Castle for the quarters ended December 31, 2004, March 31, 2005, June 30, 2005, September 30, 2005,
December 31, 2005, March 31, 2006, June 30, 2006, September 30, 2006, December 31, 2006 and March 31, 2007 is computed as follows:
Three Months Ended
December 31, 2004
(in thousands)
Site rental revenue
Less: Site rental cost of operations(3)
Site rental gross margin
March 31, 2005
$
139,755
$
48,159
91,596
$
141,468
$
48,323
93,145
March 31, 2006
(in thousands)
Site rental revenue
Less: Site rental cost of operations(3)
Site rental gross margin
June 30, 2005
$
147,409
$
48,402
99,007
161,897
$
49,690
112,207
$
169,160
$
50,927
118,233
$
178,995
$
55,261
123,734
December 31, 2005
$
152,802
$
155,446
$
50,671
102,131
$
49,959
105,487
Three Months Ended
September 30, 2006
June 30, 2006
$
September 30, 2005
December 31, 2006
March 31, 2007
$
186,672
$
299,792
$
56,576
130,096
$
106,595
193,197
Site rental gross margin (tower gross margin) for GSL for the quarters ended December 31, 2004, March 31, 2005, June 30, 2005, September 30, 2005,
December 31, 2005, March 31, 2006, June 30, 2006, September 30, 2006 and December 31, 2006 is computed as follows:
Three Months Ended
March 31, 2005
June 30, 2005
December 31, 2004
(in thousands)
Site rental revenue
Less: Site rental cost of operations(3)
$
49,062
Site rental gross margin
$
14,828
34,234
$
54,030
$
16,052
37,978
December 31, 2005
(in thousands)
Site rental revenue
Less: Site rental cost of operations(3)
Site rental gross margin
$
77,557
$
116,131
$
30,133
47,424
$
53,166
62,965
Three Months Ended
June 30, 2006
March 31, 2006
$
120,310
$
52,612
67,698
$
120,995
$
53,355
67,640
September 30, 2005
September 30, 2006
$
122,467
$
56,872
65,595
December 31, 2006
$
127,761
$
124,732
$
55,461
72,300
$
55,526
69,206
(3) Exclusive of amortization, depreciation and accretion.
31
Other Calculations
Site rental gross margin (tower gross margin) for pro forma combined CCI for the quarters ended December 31, 2004, March 31, 2005, June 30, 2005, September 30, 2005,
December 31, 2005, March 31, 2006, June 30, 2006, September 30, 2006 and December 31, 2006 is computed as follows:
Three Months Ended
March 31, 2005
June 30, 2005
December 31, 2004
(in thousands)
Site rental revenue
Less: Site rental cost of operations (3)
$
188,817
Site rental gross margin
$
62,987
125,830
$
195,498
$
64,375
131,123
December 31, 2005
(in thousands)
Site rental revenue
$
275,756
$
102,571
173,185
Less: Site rental cost of operations (3)
Site rental gross margin
$
224,966
$
268,933
$
78,535
146,431
$
103,837
165,096
Three Months Ended
June 30, 2006
March 31, 2006
$
282,892
$
103,045
179,847
September 30, 2005
September 30, 2006
$
291,627
$
107,799
183,828
December 31, 2006
$
306,756
$
311,404
$
110,722
196,034
$
112,102
199,302
Site rental gross margin (tower gross margin) and annualized site rental gross margin change for Crown Castle for the year ended December 31, 2001 to December 31, 2006 annualized is computed as follows:
Twelve Months Ended
Three Months Ended
December 31, 2001
(in thousands)
Site rental revenue
$
377,326
$
160,271
217,055
Less: Site rental cost of operations (3)
Site rental gross margin
Annualized
December 31, 2006
$
186,672
$
56,576
130,096
December 31, 2006
$
746,688
$
226,304
520,384
Change
% Change
$
369,362
98%
$
66,033
303,329
140%
Site rental gross margin (tower gross margin) for the quarter ending June 30, 2007 and the year ending December 31, 2007 are forecasted as follows:
Forecast Ranges
(in millions)
Q2 2007
Full Year 2007
Site rental revenue
Less: Site rental cost of operations (3)
$316 to $321
$1,265 to 1,280
$115 to 120
$440 to 450
Site rental gross margin
$199 to 204
$820 to 830
(3) Exclusive of amortization, depreciation and accretion.
32
Other Calculations
Annualized US site rental revenue and site rental revenue per tower for Crown Castle, AMT, and SBAC for the quarter ending March 31, 2007 is computed as follows:
($ in thousands, except per share and per tower amounts)
Crown Castle
(4)
AMT
SBAC
Site Rental Revenue
Annualized site rental revenue
$
$
300,482
1,201,928
$
$
346,029
1,384,116
$
$
76,510
306,040
# Towers
Annualized site rental revenue per tower
$
22,264
53,985
$
22,436
61,692
$
5,702
53,672
Equity Capital Per Tower for Crown Castle, AMT and SBAC for the three months ended March 31, 2007 is computed as follows:
($ in millions, except per share and per tower amounts)
Price/share on 5/7/07
March 31, 2007
March 31, 2007
March 31, 2007
Crown Castle
AMT
SBAC
$
34.03
# of shares
Equity capital
Net debt
$
281.6
9,583 $
Firm value
$
Tower Count (Wireless towers only)
Equity Capital Per Tower
$
Common Shares per Tower (in thousands of shares)
$
5,884
15,467
$
420.0
16,380 $
3,525
$
23,702
404 $
11.9
39.00
19,905
30.64
102.8
3,150
1,686
$
4,836
22,436
730 $
5,702
552
18.7
18.0
(4) Crown Castle calculation includes the sum of $284.8 million in US site rental revenue plus $15.7 million of site rental revenue from GSL for January 1 - 12, 2007
33
Other Calculations
Total Debt to Enterprise Value for Crown Castle, AMT, and SBAC for the three months ended March 31, 2007 is computed as follows:
($ in millions, except per share and per tower amounts)
March 31, 2007
March 31, 2007
Crown Castle
Total Debt
March 31, 2007
AMT
$
6,008
$
$
6,008 $
(125)
5,883
28
313
6,224 $
3,572 $
(47)
3,525
3,525 $
1,905
(219)
1,686
1,686
Market cap
Shares (in millions)
Price/share on 5/7/07
$
281.6
34.03 $
420.0
39.00 $
102.8
30.64
Market Cap
$
9,583
$
16,380
$
3,150
Total Enterprise Value
$
15,807
$
19,905
$
4,836
Enterprise Value
Debt
Less: Cash
Net Debt
Minority Interest
Preferred Stock
Total
Debt / Enterprise Value
37%
$
SBAC
3,572
18%
$
1,905
35%
34
Other Calculations
Crown Castle share purchases as a % of recurring cash flow is calculated as follows:
(In thousands of dollars)
Recurring cash flow 2003-Q1 2007
Crown Castle
2003
2004
2005
2006
Q1 2007
Total RCF
$
Share Purchases
$
(23,719)
70,580
187,411
255,812
82,399
572,483
2,038,806
356%
Potential revenue growth to recurring cash flow per share as of March 31, 2007 is computed as follows:
Average annual revenue per tenant per tower
Project Southpointe estimated demand (tenant per tower)
$
18,000
1.25
Total estimated incremental revenue per tower
$
22,500
Assumed incremental margin
Incremental recurring cash flow per tower
Incremental recurring cash flow
Proforma Common shares
$
$
Incremental recurring cash flow per share
$
Tower count
90%
20,250
450,846,000
281,600,000
1.60
22,264
35