EXHIBIT 99.1
[GRAPHIC OMITTED - LOGO]
SPECTRASITE
GETTING NETWORKS ON AIR
CONTACT: Investor Relations Department
919-466-5492
investorrelations@spectrasite.com
---------------------------------
SPECTRASITE REPORTS UNAUDITED FOURTH QUARTER 2003 RESULTS
CARY, NC, FEBRUARY 2, 2004 - SpectraSite, Inc. (NYSE: SSI), one of the largest
wireless tower operators in the United States, today reported unaudited results
for the fourth quarter ended December 31, 2003.
As previously announced, the Company decided to discontinue its broadcast
services division on December 16, 2003. The results of the broadcast services
division have been reported separately as discontinued operations in the
Company's balance sheets and statements of operations.
The Company has designated the periods prior to January 31, 2003, as
"Predecessor Company" and the periods subsequent to January 31, 2003, as
"Reorganized Company." As a result of the implementation of fresh start
accounting, the financial statements of the Reorganized Company are not
comparable to the Predecessor Company's financial statements for prior periods.
Total revenues for the fourth quarter of 2003 were $81.6 million, compared to
$74.9 million for the fourth quarter of 2002, representing an increase of 8.9%.
Net of the revenues contributed by the 545 SBC towers sold by the Company in
February, 2003, revenues increased 16.6% from the fourth quarter of 2002 to the
fourth quarter of 2003. Operating income for the fourth quarter of 2003 was
$16.6 million, up from an operating loss of $11.8 million for the same period in
2002.
Other expense during the fourth quarter of 2003 was $0.8 million as compared to
$1.7 million during the fourth quarter of 2002. Other expense items during the
fourth quarter of 2003 primarily related to losses incurred on disposal of
property, plant and equipment.
The Company's net loss was $13.6 million for the fourth quarter of 2003 versus a
net loss of $60.3 million during the fourth quarter of 2002. The Company's basic
net loss per share was $0.29 during the fourth quarter of 2003 as compared to a
basic net loss of $0.39 per share during the fourth quarter of 2002.
Adjusted EBITDA increased 29.6% to $41.5 million during the fourth quarter of
2003 from $32.0 million during the same period in the prior year. Net of the
contribution from the 545 SBC towers sold by the Company in February, 2003,
Adjusted EBITDA increased 45.2% from the fourth quarter of 2002 to the fourth
quarter of 2003. Other expense items in the amount of $0.8 million during the
fourth quarter of 2003 and $1.7 million during the fourth quarter of 2002 are
included in the Company's Adjusted EBITDA calculations.
The Company's presentation of Adjusted EBITDA is based on recent regulations
adopted by the Securities and Exchange Commission ("SEC") related to non-GAAP
financial measures. The Company defines Adjusted EBITDA for the Reorganized
Company as net income (loss) before depreciation, amortization and accretion,
interest, income tax expense
(benefit) and, if applicable, before discontinued operations and cumulative
effect of change in accounting principle. For the Predecessor Company, Adjusted
EBITDA also excludes gain on debt discharge, reorganization items, and
write-offs of investments in and loans to affiliates. The Company uses a
different definition of Adjusted EBITDA for the fiscal periods prior to its
reorganization to enable investors to view the Company's operating performance
on a consistent basis before the impact of the items discussed above on the
Predecessor Company. Each of these historical items was incurred prior to, or in
connection with, the Company's reorganization and is excluded from Adjusted
EBITDA to reflect the results of the Company's core operations. Adjusted EBITDA
may not be comparable to a similarly titled measure employed by other companies
and is not a measure of performance calculated in accordance with accounting
principles generally accepted in the United States.
Net cash provided by operating activities decreased to $29.5 million during the
fourth quarter of 2003 as compared to net cash provided by operating activities
of $34.8 million during the fourth quarter of 2002 primarily due to normal
fluctuations in working capital. Purchases of property and equipment during the
fourth quarter of 2003 were $11.6 million, up from $8.8 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 fourth quarter
of 2003 was $18.0 million as compared to free cash flow of $26.0 during the
prior year's period.
At December 31, 2003, the Company had $60.4 million of cash on hand and $639.6
million of long term debt. The Company owned or operated 7,577 towers and
in-building sites as of December 31, 2003.
ACQUISITIONS
Under the terms of an amended agreement with affiliates of SBC Communications
Inc. ("SBC"), completed on November 14, 2002, the Company agreed to lease or
sublease up to 600 SBC towers between May, 2003, and August, 2004, subject to
the towers meeting certain requirements. The agreement with SBC provides that
the Company will lease or sublease no more than 100 towers per quarter beginning
with the second quarter of 2003 and ending in the second quarter of 2004. In the
event that the Company leases or subleases fewer than 100 SBC towers in any
quarter, the final closing in the third quarter of 2004 may include additional
SBC towers necessary to meet the 600 tower commitment. During the fourth quarter
of 2003 the Company leased or subleased 56 SBC towers, for which it paid
approximately $15.6 million in cash. As of December 31, 2003, the Company was
committed to leasing or subleasing an additional 485 SBC towers during 2004.
CONFERENCE CALL INFORMATION
The Company is planning to host a conference call on Thursday, February 26,
2004, at 10:00 a.m. Eastern Standard Time to discuss fourth quarter 2003
results. Dial in information is as follows: 800-261-6483, access code 5108059. A
replay of the conference call will be available beginning two hours after the
call has ended until March 4, 2004. The replay dial in information is as
follows: (800) 642-1687, access code 5108059.
NON-GAAP FINANCIAL MEASURES AND ADDITIONAL INFORMATION
For a discussion of non-GAAP financial measures, including their usefulness to
investors and material limitations, please see "Management's Discussion and
Analysis of Financial Condition and Results of Operations - Non-GAAP Financial
Measures" included in the Company's SEC filings. Additional information may be
found on the Company's website at WWW.SPECTRASITE.COM.
ADJUSTED EBITDA. Adjusted EBITDA for the three months ended December 31, 2003
and 2002, was calculated as follows:
2
REORGANIZED PREDECESSOR
COMPANY COMPANY
THREE MONTHS THREE MONTHS
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2003 2002
---- ----
(in thousands)
Net loss $ (13,634) $(60,293)
Depreciation, amortization and accretion
Expense 25,794 45,580
Interest income (177) (330)
Interest expense 10,435 39,026
Reorganization expense -- 2,475
Income tax expense 1,486 637
Loss (income) from operations of
discontinued segment, net of income tax
expense 643 3,578
Loss on disposal of discontinued segment 16,977 1,357
---------- --------
Adjusted EBITDA $ 41,524 $ 32,030
========== ========
FREE CASH FLOW. Free cash flow for the three months ended December 31, 2003 and
2002, was calculated as follows:
REORGANIZED PREDECESSOR
COMPANY COMPANY
THREE MONTHS THREE MONTHS
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2003 2002
---- ----
(in thousands)
Net cash provided by
operating activities $ 29,540 $ 34,753
Less: Purchases of property
and equipment (11,569) (8,750)
--------- --------
Free cash flow $ 17,971 $ 26,003
========= ========
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 December 31,
2003, SpectraSite owned or operated approximately 10,000 revenue producing
sites, including 7,577 towers and in-building sites 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 the Company's
financial outlook, future expectations, financial and operating projections,
plans and 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 Company's substantial capital requirements and debt, (ii) market conditions,
(iii) the Company's dependence on demand for wireless communications and related
infrastructure, (iv) competition in the communications tower industry, including
the impact of technological developments, (v) consolidation in the wireless
industry, (vi) future regulatory actions, (vii) conditions in its operating
areas and (viii) management's estimates and assumptions included in the
Company's 2004 Outlook. These and other important factors are described in more
detail in the "Risk Factors" and the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of the Company's SEC
filings and public announcements. The Company undertakes no obligation to update
forward-looking statements to reflect subsequently occurring events or
circumstances.
# # #
3