EXHIBIT 99.1
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SPECTRASITE
GETTING NETWORKS ON AIR
CONTACT: Investor Relations Department
919-466-5492
investorrelations@spectrasite.com
---------------------------------
SPECTRASITE REPORTS SECOND QUARTER 2003 RESULTS
CARY, NC, AUGUST 11, 2003 - SpectraSite, Inc. (Ticker Symbol: SPCS.OB), one of
the largest wireless tower operators in the United States, today reported
results for the second quarter ended June 30, 2003. For comparison purposes, all
prior period results and tower data have been adjusted to reflect the sale of
545 towers to Cingular on February 10, 2003.
Total revenues for the second quarter of 2003 were $80.9 million, compared to
$73.2 million for the second quarter of 2002. Site leasing revenues increased
15.8% to $77.5 million, up from $66.9 million for the same period in 2002.
Revenues from broadcast services were $3.4 million for the second quarter of
2003 compared to $6.2 million for the second quarter of 2002. Operating income
for the second quarter of 2003 was $13.4 million, up from an operating loss of
$49.1 million for the same period in 2002. The Company's net loss was $7.6
million for the second quarter of 2003 versus a net loss of $126.1 million
during the second quarter of 2002. The Company's net loss per share was $0.32
during the second quarter of 2003 as compared to $0.82 during the second quarter
of 2002.
Adjusted EBITDA, defined by the Company as operating income (loss) before
depreciation, amortization and accretion expenses, restructuring and
non-recurring charges, and non-cash compensation charges, increased 41% to $39.0
million during the second quarter of 2003 from $27.7 million during the same
period in the prior year.
Net cash provided by operating activities increased to $16.6 million during the
second quarter of 2003 as compared to net cash used in operating activities of
$21.2 million during the second quarter of 2002. Purchases of property and
equipment during the second quarter of 2003 were $3.9 million, down from $19.6
million for the same period in 2002. Free cash flow, defined as net cash
provided by operating activities less purchases of property and equipment,
during the second quarter of 2003 was $12.7 million as compared to a free cash
flow deficit of $40.8 during the prior year's period. Free cash flow defined as
Adjusted EBITDA less purchases of property and equipment, cash interest expense,
and taxes was $24.5 million during the second quarter of 2003 as compared to a
free cash flow deficit of $19.8 during the second quarter of 2002.
Based on trailing twelve-month revenues on towers owned or operated as of June
30, 2002 and still owned or operated as of June 30, 2003, same tower revenue
growth was 15% and same tower cash flow (gross profit) increased 21%. The
Company owned or operated 7,539 towers and in-building sites at June 30, 2003,
as compared to 7,449 towers and in-building sites at June 30, 2002.
Stephen H. Clark, President and CEO, stated, "Our operating team has produced
another quarter of solid results. The predictable, recurring revenues on our
tower portfolio provide an element of clarity associated with few businesses. As
the major wireless carriers continue to improve the quality of their networks in
densely populated metropolitan markets we believe we will continue to experience
healthy growth rates in the recurring revenue and recurring cash flow streams on
our tower assets."
FINANCING TRANSACTIONS
On May 14, 2003, the Company's operating subsidiary, SpectraSite Communications,
Inc., amended its credit facility to reduce the unused $300 million commitment
under its revolving credit facility by $100 million in exchange for modification
of certain covenants in future periods and certain documentation changes.
On May 21, 2003, the Company issued $200 million aggregate principal amount of
8.25% senior notes due 2010. Semi-annual interest payments for the 8.25% senior
notes are due on May 15 and November 15 beginning on November 15, 2003. Net
proceeds from the 8.25% senior notes were utilized to prepay a portion of the
Company's outstanding indebtedness under its credit facility.
STOCK SPLIT
On August 4, 2003, the Company announced a two for one forward stock split. The
forward split will affect all stockholders of record as of August 14, 2003, and
the split will be effective on August 21, 2003. In addition, each of the
Company's outstanding warrants will be adjusted to reflect the forward split.
Effective on the record date, each warrant will entitle its holder to purchase
two shares of the Company's common stock at an aggregate exercise price of
$32.00.
ACQUISITIONS
Under the terms of an amended agreement with affiliates of SBC completed on
November 14, 2002, the Company agreed to acquire the sublease rights to a
maximum of 600 towers during the period beginning May 2003 and ending August
2004. Towers subleased by the Company under this agreement will be subleased on
a quarterly basis in increments not to exceed 100 towers per quarter. To the
extent less than 100 towers are subleased during a period, the remaining balance
will be accrued to the last sublease period in August 2004. In the second
quarter of 2003 the Company subleased 54 towers under this agreement, for which
it paid $13.3 million in cash.
CONFERENCE CALL INFORMATION
The Company is planning to host a conference call on Tuesday August 12, 2003, at
11:00 a.m. Eastern Daylight Time to discuss second quarter 2003 results. Dial in
information is as follows: 800-261-6483, access code, 1976859. A replay of the
conference call will be available from two hours after the call has ended until
August 19, 2003. The replay dial in information is as follows: (800) 642-1687,
access code, 1976859.
QUARTERLY DATA SHEET & ADDITIONAL INFORMATION
Also included as part of this press release is a quarterly data sheet that
includes certain statistics related to the Company's site leasing business and
certain statistics related to the overall Company. These statistics are among
the data which management tracks on a quarterly basis and are provided as part
of this press release because management believes they are useful measures of
current financial performance. Some of the statistics provided are non-GAAP
financial measures. Investors are urged to see the disclosures relating to
non-GAAP financial measures included as part of this press release. Additional
information may be found in the Company's 10-Q report filed with the SEC or by
accessing the Company's website at WWW.SPECTRASITE.COM.
DETERMINATION OF ADJUSTED EBITDA
Adjusted EBITDA is provided because it is a measure commonly used in the
communications site industry as a measure of a company's operating performance.
We use Adjusted EBITDA to compare our operating performance with that of our
competitors. Adjusted EBITDA is not a measurement of financial performance under
generally accepted accounting principles and should not be considered an
alternative to net income as a measure of performance or to cash flow as a
measure of liquidity. Although Adjusted EBITDA is not necessarily comparable
with similarly titled measures for other companies, we believe that Adjusted
EBITDA can assist in comparing company performance on a consistent basis without
regard to restructuring and non-recurring charges, non-cash compensation
charges, and depreciation, amortization and accretion expenses, which may vary
significantly depending on accounting methods where acquisitions are involved or
non-operating factors such as historical cost bases. When evaluating Adjusted
EBITDA, investors should consider, among other factors:
2
o increasing or decreasing trends in Adjusted EBITDA,
o whether Adjusted EBITDA has remained at positive levels historically
and
o how Adjusted EBITDA compares to levels of debt and interest expense.
Adjusted EBITDA, excluding the prior period contribution of 545 towers sold to
Cingular on February 10, 2003, for the three months ended June 30, 2003 and 2002
was calculated as follows:
THREE MONTHS THREE MONTHS
ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002
------------- -------------
(In thousands)
Net loss.............................................. $ (7,574) $(126,128)
Add / Less:
Depreciation, amortization and accretion expenses.. 25,626 47,888
Restructuring and non-recurring charges............ -- 28,570
Non-cash compensation charges...................... -- 291
Interest income.................................... (279) (293)
Interest expense................................... 18,604 61,795
Other expense...................................... 1,841 10,795
Income tax expense (benefit)....................... 206 (18)
Loss from operations of discontinued segment, net
of income tax expense............................ -- 4,797
Loss on disposal of discontinued segment........... 596 --
--------- ---------
Adjusted EBITDA...................................... $ 39,020 $ 27,697
========= =========
DETERMINATION OF QUARTERLY FREE CASH FLOW
Free cash flow (deficit) consists of net cash provided by operating activities
less purchases of property and equipment. Free cash flow (deficit) is provided
because it is a measure commonly used in the communications site industry as a
measure of a company's ability to generate cash from operations. Free cash flow
(deficit) is not a measurement of financial performance under generally accepted
accounting principles and should not be considered an alternative to net income
or cash flows provided by (used in) operating activities as a measure of
performance, cash flows or liquidity. Although, free cash flow (deficit) is not
necessarily comparable with similarly titled measures for other companies, we
believe that free cash flow (deficit) can assist in comparing company
performance on a consistent basis. Free cash flow (deficit) for the three months
ended June 30, 2003 and 2002 was calculated as follows.
THREE MONTHS THREE MONTHS
ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002
------------- -------------
(In thousands)
Net cash provided by (used in) operating activities.. $ 16,623 $ (21,187)
Less: Purchases of property and equipment............ (3,926) (19,579)
---------- ----------
Free cash flow (deficit)............................. $ 12,697 $ (40,766)
========== ===========
Adjusted EBITDA...................................... $ 39,020 $ 27,697
Less: Purchases of property and equipment............ (3,926) (19,579)
Less: Cash Interest Expense.......................... (10,375) (27,953)
Less: Taxes.......................................... (206) 18
---------- ----------
Free cash flow (deficit)............................. $ 24,513 $ (19,817)
========== ===========
DETERMINATION OF SAME TOWER REVENUE AND TOWER CASH FLOW
Same tower revenue and same tower cash flow are based on trailing twelve-months
site leasing revenue (exclusive of fee revenue) and site leasing costs of
operations, excluding depreciation, amortization and accretion expenses on
3
the towers that we owned or operated as of June 30, 2002, and 2003. Same tower
revenue and same tower cash flow are provided because they are measures commonly
used in the communications site industry as a measure of a company's operating
performance. Same tower revenue and same tower cash flow are not measurements of
financial performance under generally accepted accounting principles and should
not be considered alternatives to net income or cash flows provided by (used in)
operating activities as a measure of performance, cash flows or liquidity.
Although, same tower revenue and same tower cash flow are not necessarily
comparable with similarly titled measures for other companies, we believe that
same tower revenue and same tower cash flow can assist in comparing company
performance on a consistent basis. Same tower revenue and same tower cash flow
on the 7,420 towers that we owned or operated as of June 30, 2002 and 2003 for
the three months ended June 30, 2003 and 2002 were calculated as follows:
THREE MONTHS THREE MONTHS
ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002
------------- -------------
(In thousands)
Site leasing revenues..................................................... $ 77,498 $ 69,633
Less: Fee revenues included in site leasing revenues...................... (1,885) (896)
Less: Revenue from towers not owned as of June 30, 2002 and 2003 and
managed or marketed towers............................................ (3,767) (6,257)
----------- -----------
Same tower site leasing revenues on 7,420 towers.......................... $ 71,846 $ 62,480
---------- ----------
Site leasing costs of operations, excluding depreciation, amortization and
accretion expenses.................................................... $ 25,764 $ 26,705
Less: Site leasing costs of operations for towers not owned as of June 30,
2002 and 2003 and managed or marketed towers.......................... (461) (2,549)
----------- -----------
Same tower site leasing costs of operations, excluding depreciation,
amortization and accretion expenses on 7,420 towers................... 25,303 24,156
---------- ----------
Same tower cash flow on 7,420 towers...................................... $ 46,543 $ 38,324
========== ==========
DETERMINATION OF CASH INTEREST EXPENSE
Cash interest for the three months ended June 30, 2003, includes interest on our
credit facility and on our 8 1/4% Senior Notes due 2010. The predecessor
company's cash interest for the three months ended June 30, 2002, includes
interest on its credit facility and on its 10 3/4% Senior Notes due 2010, its 12
1/2% Senior Notes due 2010 and its 6 3/4% Senior Convertible Notes due 2010. A
reconciliation of interest expense to cash interest for the three months ended
June 30, 2003 and 2002 is as follows:
THREE MONTHS THREE MONTHS
ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002
------------- -------------
(In thousands)
Interest expense.......................................................... $ 18,604 $ 61,795
Less: Amortization of senior discount notes............................... -- (31,208)
Less: Amortization of debt issuance costs................................. (1,661) (2,634)
Less: Writeoff of debt issuance costs..................................... (6,568) --
----------- ----------
Cash interest............................................................. $ 10,375 $ 27,953
========== ==========
DETERMINATION OF JUNE 30, 2002, RESULTS NET OF THE CONTRIBUTION OF 545 SBC
TOWERS SOLD
On February 10, 2003, we sold 545 SBC towers in California and Nevada to
Cingular for an aggregate purchase price of $81.0 million. The following table
shows the effects of the sale of the 545 SBC towers on operations for the three
months ended June 30, 2002:
4
AMOUNTS ADJUSTED
ACTUAL 545 SBC FOR 545 SBC
AMOUNTS TOWERS SOLD TOWERS SOLD
------- ----------- -----------
(In thousands)
Predecessor Company -- Three months ended June 30, 2002:
Site leasing revenues................................... $ 69,633 $ (2,707) $ 66,926
Cost of site leasing operations,
excluding depreciation, amortization
and accretion expense................................. 26,705 (1,410) 25,295
------------ ----------- ---------
Tower cash flow......................................... 42,928 (1,297) 41,631
Depreciation, amortization and accretion expenses....... 50,625 (2,737) 47,888
------------ ------------ ---------
Operating Income (loss)................................. $ (7,697) $ 1,440 $ (6,257)
============= =========== ==========
ABOUT SPECTRASITE, INC.
SpectraSite, Inc. (www.spectrasite.com), based in Cary, North Carolina, is one
of the largest wireless tower operators in the United States. At June 30, 2003,
SpectraSite owned or operated approximately 10,000 revenue producing sites,
including 7,539 towers primarily in the top 100 markets in the United States.
SpectraSite's customers are leading wireless communications providers, including
AT&T Wireless, Cingular, Nextel, Sprint PCS, T-Mobile and Verizon Wireless.
SAFE HARBOR
This press release and oral statements made from time to time by representatives
of the Company may contain "forward-looking statements" concerning SpectraSite's
future expectations, financial and operating projections, plans, strategies and
the trading markets for its securities. These forward-looking statements are
subject to a number of risks and uncertainties. The Company wishes to caution
readers that certain factors may impact the Company's actual results and could
cause results for subsequent periods to differ materially from those expressed
in any forward-looking statements made by or on behalf of the Company. Such
factors include, but are not limited to (i) the interest of market makers and
others in maintaining an active market for SpectraSite's securities, (ii)
SpectraSite's substantial capital requirements and leverage, (iii) market
conditions, (iv) the Company's dependence on demand for wireless communications
and related infrastructure, (v) competition in the communications tower
industry, including the impact of technological developments and (vi) future
regulatory actions and conditions in its operating areas. These and other
important factors are described in more detail in the "Risk Factors" section of
the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2003
and in the Company's other SEC filings and public announcements. The Company
undertakes no obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.
# # #
5
SPECTRASITE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
At June 30, 2003 and December 31, 2002
(dollars in thousands)
REORGANIZED PREDECESSOR
COMPANY COMPANY
JUNE 30, 2003 DECEMBER 31, 2002
------------- -----------------
(unaudited)
(Dollars in thousands)
ASSETS
Current assets:
Cash and cash equivalents................................................... $ 58,753 $ 80,961
Accounts receivable, net of allowance of $8,839 and
$11,431, respectively.................................................... 6,553 15,180
Costs and estimated earnings in excess of billings.......................... 3,194 2,169
Inventories................................................................. 7,756 7,878
Prepaid expenses and other.................................................. 12,759 16,696
-------------- --------------
Total current assets................................................ 89,015 122,884
Property and equipment, net................................................... 1,243,743 2,292,945
Goodwill, net................................................................. -- 60,626
Other assets.................................................................. 223,427 102,001
-------------- --------------
Total assets........................................................ $ 1,556,185 $ 2,578,456
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable............................................................ $ 7,840 $ 13,029
Accrued and other expenses.................................................. 77,390 66,280
Current portion of liabilities under SBC agreement.......................... 40,335 --
Billings in excess of costs and estimated earnings.......................... 748 703
Current portion of credit facility.......................................... -- 2,244
-------------- --------------
Total current liabilities........................................... 126,313 82,256
-------------- --------------
Long-term portion of credit facility.......................................... 479,955 780,711
Senior notes.................................................................. 200,000 --
Long-term portion of liabilities under SBC agreement.......................... 16,008 --
Other long-term liabilities................................................... 52,315 27,330
-------------- --------------
Total long-term liabilities......................................... 748,278 808,041
-------------- --------------
Liabilities subject to compromise (Note 2).................................... -- 1,763,286
-------------- --------------
Stockholders' equity (deficit):
Common stock, $0.001 par value, 300,000,000 shares
authorized, 154,013,917 issued and outstanding at
December 31, 2002........................................................ -- 154
Common stock, $0.01 par value, 250,000,000 shares
authorized, 23,743,515 issued and outstanding at June
30, 2003................................................................. 237 --
Additional paid-in-capital.................................................. 687,099 1,624,939
Accumulated other comprehensive income (loss)............................... 3,524 (355)
Accumulated deficit......................................................... (9,266) (1,699,865)
-------------- --------------
Total stockholders' equity (deficit)................................ 681,594 (75,127)
-------------- --------------
Total liabilities and stockholders' equity
(deficit)......................................................... $ 1,556,185 $ 2,578,456
============== ==============
6
SPECTRASITE, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
REORGANIZED PREDECESSOR REORGANIZED PREDECESSOR PREDECESSOR
COMPANY COMPANY COMPANY COMPANY COMPANY
THREE MONTHS THREE MONTHS FIVE MONTHS ONE MONTH SIX MONTHS
ENDED ENDED ENDED ENDED ENDED
JUNE 30, 2003 JUNE 30, 2002 JUNE 30, 2003 JANUARY 31, JUNE 30, 2002
------------- ------------- ------------- ----------- -------------
(In thousands, except per share amounts)
Revenues:
Site leasing.........................................$ 77,498 $ 69,633 $ 128,567 $ 25,556 $ 135,585
Broadcast services................................... 3,413 6,236 6,988 1,237 12,688
----------- ----------- ----------- ------------ -----------
Total revenues............................... 80,911 75,869 135,555 26,793 148,273
----------- ----------- ----------- ------------ -----------
Operating Expenses:
Costs of operations, excluding depreciation,
amortization and accretion expense:
Site leasing...................................... 25,764 26,705 42,824 8,840 52,210
Broadcast services................................ 3,538 5,005 6,427 1,492 10,375
Selling, general and administrative expenses......... 12,589 15,456 21,275 4,280 30,976
Depreciation, amortization and accretion
expenses.......................................... 25,626 50,625 42,452 16,075 95,263
Restructuring and non-recurring charges................ -- 28,570 -- -- 28,570
----------- ----------- ----------- ------------ -----------
Total operating expenses..................... 67,517 126,361 112,978 30,687 217,394
----------- ----------- ----------- ------------ -----------
Operating income (loss)................................ 13,394 (50,492) 22,577 (3,894) (69,121)
----------- ------------ ----------- ------------ ------------
Other income (expense):
Interest income...................................... 279 293 496 137 377
Interest expense..................................... (18,604) (61,795) (27,865) (4,721) (120,492)
Gain on debt discharge............................... -- -- -- 1,034,764 --
Other expense........................................ (1,841) (10,795) (3,070) (493) (11,182)
----------- ----------- ----------- ------------ -----------
Total other income (expense)................. (20,166) (72,297) (30,439) 1,029,687 (131,297)
----------- ----------- ----------- ------------ -----------
Income (loss) from continuing operations before
income taxes......................................... (6,772) (122,789) (7,862) 1,025,793 (200,418)
Income tax expense (benefit)........................... 206 (18) 808 5 143
----------- ------------ ----------- ------------ -----------
Income (loss) from continuing operations............... (6,978) (122,771) (8,670) 1,025,788 (200,561)
Reorganization items:
Adjust accounts to fair value........................ -- -- -- (644,688) --
Professional and other fees.......................... -- -- -- (23,894) --
----------- ----------- ----------- ------------ -----------
Total reorganization items................... -- -- -- (668,582) --
----------- ----------- ----------- ------------ -----------
Income (loss) before discontinued operations........... (6,978) (122,771) (8,670) 357,206 (200,561)
Discontinued operations:
Loss from operations of discontinued segment,
net of income tax expense......................... -- (4,797) -- -- (2,785)
Loss on disposal of discontinued segment............. (596) -- (596) -- --
----------- ----------- ----------- ------------ -----------
Income (loss) before cumulative effect of change in
accounting principle................................. (7,574) (127,568) (9,266) 357,206 (203,346)
Cumulative effect of change in accounting
principle............................................ -- -- -- (12,236) (376,753)
----------- ----------- ----------- ------------ ------------
Net income (loss)......................................$ (7,574) $ (127,568) $ (9,266) $ 344,970 $ (580,099)
=========== =========== =========== ============ ===========
Basic and diluted earnings per share:
Income (loss) from continuing operations.............$ (0.30) $ (0.80) $ (0.37) $ 6.66 $ (1.30)
Reorganization items................................. -- -- -- (4.34) --
Discontinued operations.............................. (0.02) (0.03) (0.02) -- (0.02)
Cumulative effect of change in accounting
principle.......................................... -- -- -- (0.08) (2.45)
----------- ----------- ----------- ----------- ------------
Net income (loss)....................................$ (0.32) $ (0.83) $ (0.39) $ 2.24 $ (3.77)
=========== =========== =========== ============ ===========
Weighted average common shares outstanding (basic
and diluted)........................................... 23,622 154,014 23,608 154,014 153,834
=========== =========== =========== ============ ===========
7
SPECTRASITE, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
REORGANIZED
COMPANY PREDECESSOR PREDECESSOR
FIVE MONTHS COMPANY COMPANY
ENDED ONE MONTH ENDED SIX MONTHS ENDED
JUNE 30, 2003 JANUARY 31, 2003 JUNE 30, 2002
------------- ---------------- -------------
(In thousands)
OPERATING ACTIVITIES
Net income (loss).................................................. $ (9,266) $ 344,970 $ (580,099)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation.................................................. 35,089 15,609 96,703
Cumulative effect of change in accounting principle............. -- 12,236 376,753
Amortization of intangible assets............................... 6,277 252 1,728
Amortization of debt issuance costs........................... 2,451 425 5,267
Amortization of asset retirement obligation................... 1,087 214 --
Amortization of senior discount notes......................... -- -- 61,149
Writeoff of debt issuance costs............................... 8,182 -- --
Non-cash compensation charges................................. -- -- 580
(Gain) loss on disposal of assets............................. 1,676 (84) 31,426
Gain on debt discharge........................................ -- (1,034,764) --
Adjust accounts to fair value................................. -- 644,688 --
Equity in net loss of affiliates.............................. -- -- 102
Changes in operating assets and liabilities, net
of acquisitions:
Accounts receivable......................................... 3,582 5,045 33,053
Costs and estimated earnings in excess of billings, net..... (707) (272) (8,305)
Inventories................................................. 124 (2) (1,751)
Prepaid expenses and other.................................. (934) (2,238) (3,879)
Accounts payable............................................ (18,751) 13,549 (23,187)
Other liabilities........................................... (260) 6,264 (5,228)
---------- ------------- ------------
Net cash provided by (used in) operating activities....... 28,550 5,892 (15,688)
---------- ------------- -------------
INVESTING ACTIVITIES
Purchases of property and equipment............................. (6,181) (2,737) (48,530)
Acquisitions.................................................... (9,288) -- (10,067)
Loans to affiliates............................................. -- -- (750)
Proceeds from the sale of assets................................ 81,171 -- --
---------- ------------- ------------
Net cash provided by (used in) investing activities....... 65,702 (2,737) (59,347)
---------- ------------- ------------
FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of
issuance costs................................................ 1,606 -- 477
Proceeds from issuance of long-term debt........................ 200,000 -- 90,000
Repayments of debt.............................................. (303,275) (10,884) (1,656)
Debt issuance costs............................................. (7,062) -- (26)
----------- ------------- ------------
Net cash provided by (used in) financing activities....... (108,731) (10,884) 88,795
---------- ------------- ------------
Net increase (decrease) in cash and cash equivalents...... (14,479) (7,729) 13,760
Cash and cash equivalents at beginning of period................ 73,232 80,961 31,547
---------- ------------- ------------
Cash and cash equivalents at end of period...................... $ 58,753 $ 73,232 $ 45,307
========== ============= ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest........................ $ 12,693 $ 4,265 $ 55,828
Cash paid during the period for income taxes.................... 482 5 772
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
Common stock issued for deposits................................ $ -- $ 408 $ --
Common stock issued for acquisitions............................ -- -- 1,677
Capital lease obligations incurred for the
purchase of property and equipment............................ 68 -- 1,034
8
SPECTRASITE, INC.
QUARTERLY DATA SHEET
SITE LEASING STATISTICS
2003
----------------------------------------
1Q (1) 2Q 3Q 4Q
----------------------------------------
TOWER ANALYSIS
- --------------
Starting Towers 7,491 7,488
Towers Added - 54
Towers Retired (3) (3)
----------------------------------------
Ending Towers 7,488 7,539
===================================================================================================================================
REVENUE ANALYSIS ($ In thousands except per Ending Tower data)
- ----------------
Site Leasing Revenues $75,055 $77,498
% Change Versus Prior Quarter 7.2% 3.3%
% Change Versus Prior Year 18.6% 15.8%
Annualized Revenues per Ending Tower $40,093 $41,118
% Same Tower Revenue Growth (12 month basis) 16.0% 15.0%
===================================================================================================================================
OPERATING COSTS ANALYSIS ($ In thousands except per Ending Tower data)
- ------------------------
Site Leasing Costs of Operations $25,240 $25,764
% Change Versus Prior Quarter -7.8% 2.1%
% Change Versus Prior Year 5.1% 1.9%
Site Leasing SG&A $12,234 $12,079
% Change Versus Prior Quarter 0.2% -1.3%
% Change Versus Prior Year -13.8% -15.4%
Annualized Site Leasing Costs of Operations and SG&A per Ending Tower $20,018 $20,079
% Change Versus Prior Quarter -5.3% 0.3%
% Change Versus Prior Year -2.2% -5.5%
===================================================================================================================================
CASH FLOW ANALYSIS ($ in thousands except per Ending Tower data)
- ------------------
Site Leasing Tower Cash Flow (Gross Profit) $49,815 $51,734
% Change Versus Prior Quarter 16.9% 3.9%
% Change Versus Prior Year 26.8% 24.3%
Tower Cash Flow (Gross Profit) Margin 66.4% 66.8%
Annualized Tower Cash Flow (Gross Profit) per Ending Tower $26,611 $27,449
% Same Tower Growth (12 month basis) 22.0% 21.0%
Site Leasing Adjusted EBITDA $37,581 $39,655
% Change Versus Prior Quarter 23.6% 5.5%
% Change Versus Prior Year 49.7% 44.9%
Site Leasing Adjusted EBITDA Margin 50.1% 51.2%
Annualized Site Leasing Adjusted EBITDA per Ending Tower $20,075 $21,040
===================================================================================================================================
(1) 1Q 2003 results have been adjusted to reflect the sale of 545 towers to
Cingular on February 10, 2003.
(2) The term "Annualized" represents current quarter results times four.
9
SPECTRASITE, INC.
QUARTERLY DATA SHEET
TOTAL COMPANY STATISTICS
2003
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1Q (1) 2Q 3Q 4Q
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FINANCIAL STATISTICS ($ in thousands except per Ending Tower data)
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Purchases of Property and Equipment
Discretionary $4,992 $3,926
Non-Discretionary $0 $0
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Total Purchases of Property and Equipment $4,992 $3,926
Acquisitions (Total Cash Paid) $0 $13,297
Net Accounts Receivable $8,647 $6,553
Net Accounts Receivable as % of Total Annualized Revenue 2.7% 2.0%
Cash and Cash Equivalents $87,904 $58,753
Total Debt (Credit Facility and Senior Notes) $706,955 $679,955
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Total Debt (net of Cash and Cash Equivalents) $619,051 $621,202
Total Debt per Ending Tower $94,412 $90,192
Net Total Debt per Ending Tower $82,672 $82,398
Total Debt/Annualized Total Adjusted EBITDA 4.7x 4.4x
Net Total Debt/Annualized Total Adjusted EBITDA 4.2x 4.0x
Interest Expense
Cash Interest Expense $11,153 $10,375
Amortization and Write Off of Debt Issuance Costs $2,829 $8,229
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Total Interest Expense $13,982 $18,604
Annualized Total Adjusted EBITDA/Annualized Cash Interest Expense 3.3x 3.8x
Free Cash Flow $11,917 $12,697
Annualized Free Cash Flow per Ending Tower $6,366 $6,737
(1) 1Q 2003 results have been adjusted to reflect the sale of 545 towers to
Cingular on February 10, 2003.
(2) The term "Annualized" represents current quarter results times four.
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