Crown Castle International
News Release
Contacts: W. Benjamin Moreland, CFO
Jay Brown, VP Finance
Crown Castle International Corp.
713-570-3000
FOR IMMEDIATE RELEASE
Ken Dennard / kdennard@drg-e.com
Lisa Elliott / lelliott@drg-e.com
DRG&E
713-529-6600
CROWN CASTLE INTERNATIONAL REPORTS
FIRST QUARTER RESULTS AND EXTENSION OF
CROWN CASTLE ATLANTIC JOINT VENTURE
May 5, 2003 - HOUSTON, TEXAS - Crown Castle International Corp. (NYSE:CCI) today
reported results for the first quarter ended March 31, 2003.
Total revenue for the first quarter of 2003 was $216.7 million, compared to
$220.6 million for the first quarter of 2002. Site rental and broadcast
transmission revenue for the first quarter of 2003 increased 15.4% to $185.0
million, up from $160.3 million for the same period in 2002. Net loss (after
deduction of dividends on preferred stock and net of gains on repurchases of
preferred stock of $3.3 million for first quarter 2003) improved to $83.4
million for the first quarter of 2003 from a net loss of $123.5 million for the
same period in 2002. First quarter loss per share was $0.38 compared to a loss
per share of $0.56 in last year's first quarter. Net cash from operating
activities for the first quarter of 2003 was $5.9 million, down from $16.0
million for the same period in 2002. Capital expenditures for the first quarter
were $52.8 million, down from $73.0 million for the same period in 2002. Free
cash flow, defined as cash from operating activities less capital expenditures,
for the first quarter of 2003 was a use of cash of $46.9 million, an improvement
from a use of cash of $56.9 million for the same period in the prior year.
OPERATING RESULTS
US site rental revenue for the first quarter of 2003 increased 5.9% to
$107.8 million, up from $101.8 million for the same period in 2002, and UK site
rental and broadcast transmission
News Release continued:
Page 2 of 6
revenue for the first quarter of 2003 increased 33.1% to $71.1 million, up from
$53.5 million for the same period in 2002. These revenue results approximate
same tower sales as a result of the fact that 97% of Crown Castle's sites on
March 31, 2003 were in operation as of January 1, 2002. On a consolidated basis,
site rental and broadcast transmission gross margin, defined as site rental and
broadcast transmission revenue less site rental and broadcast transmission cost
of operations, increased 13.6 percent to $111.6 million, up $13.4 million in the
first quarter of 2003 from the same period in 2002. For the first quarter of
2003, US capital expenditures were $5.6 million, and UK capital expenditures
were $46.2 million (including the $33.2 million payment to British Telecom as
previously announced). Reflecting Crown Castle's strategic decision to
de-emphasize non-core service revenues, network service revenue declined to
$31.8 million for the first quarter of 2003 from $60.4 million for the same
period last year.
"Our operations exceeded our financial targets for the first quarter
through our continued efforts to grow our recurring tower and broadcast
business, reduce capital expenditures, and decrease working capital," stated W.
Benjamin Moreland, CFO of Crown Castle. "As a result, we beat our targets for
site rental and broadcast transmission revenue, net cash from operating
activities and free cash flow for the first quarter. As we demonstrated at our
Analyst Day on April 9th, we believe substantial tenant demand exists for our
towers, which we expect will continue to drive additional long-term recurring
revenue and cash flow to our existing tower portfolio. We believe organic
leasing revenue will continue to be added during 2003 consistent with our
previously announced expectations."
During the first quarter of 2003, Crown Castle developed 34 sites, 31 of
which were developed under our agreement with British Telecom in the UK. Also
during the first quarter, Crown Castle repaid $22.9 million of senior credit
facility debt (including $15.0 million in its CCA facility and $7.9 million in
its UK facility). At March 31, 2003, Crown Castle had $851.4 million of total
liquidity, comprised of $555.2 million of cash and cash equivalents and liquid
investments, and total availability under its senior credit facilities of $296.2
million.
CHANGES TO JOINT VENTURES WITH VERIZON
On May 2, 2003, Crown Castle reached agreement with Verizon to extend
certain termination rights relating to Verizon's interest in the Crown Castle
Atlantic Joint Venture (CCA) until July 2007 and exchange Verizon's ownership
interests in the Crown Castle GT Joint Venture (CCGT) for additional ownership
interests in CCA. Further, Crown Castle purchased from Verizon approximately 5.1
million shares of Crown Castle common stock previously held by
News Release continued:
Page 3 of 6
CCGT, and CCA distributed 15.6 million shares of Crown Castle common stock
previously held by CCA to Verizon. After giving effect to the agreements, Crown
Castle owns 62.8% of CCA and 100% of CCGT. The purchase of the Crown Castle
shares, along with a payment for working capital, resulted in the use of
approximately $36.7 million in cash ($31.0 million for the shares and $5.7
million for the working capital).
"We are extremely pleased with the commitment of Verizon, our largest US
customer, to maintain its significant position in CCA for the foreseeable
future," stated John P. Kelly, CEO of Crown Castle. "By extending Verizon's
ownership in CCA until 2007, we have eliminated the near-term prospect of
Verizon's election to exit the venture, which could have resulted in a
significant near-term cash requirement on our business. Further, we are excited
about continuing our cooperative partnership with Verizon in providing tower
infrastructure."
Additional details regarding the changes to CCA and CCGT are available in
Crown Castle's Form 8-K to be filed on May 6, 2003.
OUTLOOK
The following statements and outlook table are based on current
expectations and assumptions and assume a US dollar to UK pound exchange rate of
1.55 dollars to 1.00 pound and a US dollar to Australian dollar exchange rate of
0.50 US dollars to 1.00 Australian dollar. The following Outlook sections
contain forward-looking statements, and actual results may differ materially.
Information regarding potential risks which could cause actual results to differ
from the forward-looking statements herein are set forth below and in the
Company's filings with the Securities and Exchange Commission.
Based in part on the results for the first quarter of 2003, Crown Castle has
adjusted certain elements of its previously provided financial guidance for
2003, which results in expected free cash flow increasing from between $(35)
million and $0 to between $20 million and $50 million for the full year 2003.
The most significant adjustment relates to the removal of the remaining $45
million payment to British Telecom from the 2003 outlook. Crown Castle believes
it will conclude negotiations with British Telecom to eliminate this final
contractual obligation for site acquisition. Crown Castle's 2003 and 2004
projected net cash provided by operating activities assumes the effect of
converting paid-in-kind interest to cash pay for the 10 5/8%, 10 3/8%, and
11 1/4% Senior Discount Notes and the 12 3/4% Senior Exchangeable Preferred
Stock.
News Release continued:
Page 4 of 6
The following table sets forth Crown Castle's current outlook:
(dollars in millions):
Second Quarter Full Year Full Year
2003 2003 2004
-------------- --------- ---------
Site rental and broadcast transmission revenue 184 to 188 750 to 765 765 to 820
Net cash provided by operating activities 70 to 80 160 to 200 140 to 210
Capital expenditures 32 to 40 95 to 115 80 to 130
BT site acquisition - 33 -
Free cash flow 35 to 45 20 to 50 50 to 80
US site builds (# of sites) 4 10 to 20 0 to 20
UK site builds (# of sites) 40 to 50 220 to 260 200 to 480
CONFERENCE CALL DETAILS
Crown Castle has scheduled a conference call for Tuesday, May 6, 2003 at
9:30 a.m. eastern time to discuss first quarter results and Crown Castle's
Outlook. Please dial 303-262-2190 and ask for the Crown Castle call at least 10
minutes prior to the start time. A telephonic replay of the conference call will
be available through May 13, 2003 and may be accessed by calling 303-590-3000
using pass code 535647. An audio archive will also be available on Crown
Castle's website at www.crowncastle.com shortly after the call and will be
accessible for approximately 90 days. For more information, please contact Karen
Roan at DRG&E at 1-713-529-6600 or email kroan@drg-e.com.
Crown Castle International Corp. engineers, deploys, owns and operates
technologically advanced shared wireless infrastructure, including extensive
networks of towers and rooftops as well as analog and digital audio and
television broadcast transmission systems. Crown Castle offers near-universal
broadcast coverage in the United Kingdom and significant wireless communications
coverage to 68 of the top 100 United States markets, to more than 95 percent of
the UK population and to more than 92 percent of the Australian population.
Crown Castle owns, operates and manages over 15,500 wireless communication sites
internationally. For more information on Crown Castle, visit:
www.crowncastle.com.
News Release continued:
Page 5 of 6
Non-GAAP Financial Measures
This press release includes presentations of Free Cash Flow and Adjusted EBITDA,
which are non-GAAP financial measures. Crown Castle defines Free Cash Flow as
net cash provided by operating activities less capital expenditures (both
amounts from the Consolidated Statement of Cash Flows). Crown Castle defines
Adjusted EBITDA as operating income (loss) plus depreciation, amortization and
accretion, non-cash general and administrative compensation charges, asset
write-down charges and restructuring charges. Free Cash Flow and Adjusted EBITDA
are not intended as alternative measures of operating results or cash flow from
operations (as determined in accordance with generally accepted accounting
principles). Further, our measure of Free Cash Flow and Adjusted EBITDA may not
be comparable to similarly titled measures of other companies. Free Cash Flow is
presented as additional information because management believes it to be a
useful indicator of our ability to execute our business strategy without
reliance on additional borrowing or the use of our cash and liquid investments.
Adjusted EBITDA is presented as additional information because management
believes it to be a useful indicator of the current financial performance of our
core businesses. In addition, Adjusted EBITDA is the measure of current
financial performance generally used in our debt covenant calculations. The
tables set forth below reconcile these non-GAAP financial measures to comparable
GAAP financial measures. Our results under GAAP are set forth in the financial
statements attached on pages 7 through 9 of this press release.
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial
Measures
Free Cash Flow is computed as follows:
(In thousands of dollars) For the Three Months Ended
---------------------------------
March 31, 2003 March 31, 2002
-------------- --------------
Net cash provided by operating activities $ 5,932 $ 16,041
Less: Capital expenditures (52,849) (72,981)
--------- ---------
Free Cash Flow $(46,917) $ (56,940)
========= ==========
Adjusted EBITDA is computed as follows:
(In thousands of dollars) For the Three Months Ended
---------------------------------------
March 31, 2003 March 31, 2002
-------------- --------------
Operating income (loss) $ 11,822 $(20,023)
Depreciation, amortization and accretion 80,357 71,715
Non-cash general and administrative compensation charges 2,431 1,314
Asset write-down charges -- 31,941
Restructuring charges -- 5,852
--------- --------
Adjusted EBITDA $ 94, 610 $90, 799
========= ========
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements and information that are
based on management's beliefs as well as assumptions made by and information
currently available to management. Such forward-looking statements include, but
are not limited to, expectations, projections and estimates regarding (i) demand
for our sites and towers, (ii) organic leasing rates, (iii) the relationship
between Verizon and Crown Castle, (iv) currency exchange rates, (v) the outcome
of negotiations with British Telecom regarding the remaining site acquisition
payment to British Telecom, (vi) revenues, (vii) net cash provided by operating
activities, (viii) sites to be acquired and constructed, (ix) capital
expenditures, and (x) free cash flow.
News Release continued:
Page 6 of 6
Although Crown Castle believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to have been correct. Such statements are subject to
certain risks, uncertainties and assumptions, including but not limited to the
success or failure of our efforts to implement our business strategy and the
following:
. Our substantial level of indebtedness could adversely affect our
ability to react to changes in our business and limit our ability to
use debt to fund future capital needs.
. If we are unable to service our indebtedness, our indebtedness may be
accelerated.
. Our business depends on the demand for wireless communications, which
has been and may continue to be lower and slower than anticipated.
. The continuation of the current economic and telecommunications
industry slowdown could materially and adversely affect our business
and the business of our customers.
. We may be unable to manage our significant growth.
. The loss, consolidation or financial instability of any of our limited
number of customers could materially decrease revenues.
. Restrictive covenants on our debt instruments may limit our ability to
take actions that may be in our best interests.
. We operate in an increasingly competitive industry and many of our
competitors have significantly more resources than we do or have less
debt than we do.
. Technology changes may significantly reduce the demand for towers and
wireless communications sites.
. 2.5G/3G and other technologies, including digital terrestrial
television, may not deploy or be adopted by customers as rapidly or in
the manner projected.
. Carrier consolidation or reduced carrier expansion may significantly
reduce the demand for towers and wireless communication sites.
. Network sharing and other agreements among our customers may act as
alternatives to leasing sites from us.
. Demand for our network services business is very volatile which causes
our network services operating results to vary significantly for any
particular period.
. We may need additional financing for strategic growth opportunities
which may not be available.
. We generally lease or sublease the land under our sites and towers and
may not be able to maintain these leases at commercially viable rates.
The loss of any of our ground leases could result in retirement
obligations.
. Laws and regulations, which could change at any time, govern our
business and industry, and we could fail to comply with these laws and
regulations.
. We could suffer from future claims if radio frequency emissions from
equipment on our sites and towers are demonstrated to cause negative
health effects.
. Our international operations expose us to changes in foreign currency
exchange rates.
. We are heavily dependent on our senior management.
. Certain provisions of our certificate of incorporation, bylaws and
operative agreements and domestic and international competition laws
could make it more difficult for a third party to acquire control of
us or for us to acquire control of a third party, even if such a
change in control would be beneficial to our stockholders.
. Sales or issuances, including as dividends, of a substantial number of
shares of our common stock could adversely affect the market price of
our common stock.
. Disputes with customers and suppliers may adversely affect results.
. The carrying value of our sites and related goodwill may be subject to
impairment in the future if we are unable to add sufficient additional
tenants to the sites.
Should one or more of these risks materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those expected. More
information about potential factors, which could affect Crown Castle's financial
results, is included in Crown Castle's filings with the Securities and Exchange
Commission.
[CROWN CASTLE LOGO] CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
AND OTHER FINANCIAL DATA
(in thousands, except per share data)
Three Months Ended March 31,
------------------------------
2003 2002
----------- -----------
Net revenues:
Site rental and broadcast transmission $184,960 $ 160,264
Network services and other 31,764 60,353
-------- ---------
Total net revenues 216,724 220,617
-------- ---------
Costs of operations:
Site rental and broadcast transmission 73,360 62,066
Network services and other 24,942 43,725
-------- ---------
Total costs of operations 98,302 105,791
-------- ---------
General and administrative 22,192 21,788
Corporate development 1,620 2,239
Restructuring charges -- 5,852
Asset write-down charges -- 31,941
Non-cash general and administrative compensation charges 2,431 1,314
Depreciation, amortization and accretion 80,357 71,715
-------- ---------
Operating income (loss) 11,822 (20,023)
Interest and other income (expense) (1,642) (6,090)
Interest expense and amortization of deferred financing costs (72,638) (76,319)
-------- ---------
Loss before income taxes, minority interests and cumulative effect of
change in accounting principle (62,458) (102,432)
Provision for income taxes (3,966) (4,659)
Minority interests (557) 3,698
-------- ---------
Loss before cumulative effect of change in accounting principle (66,981) (103,393)
Cumulative effect of change in accounting principle for asset retirement
obligations, net of related income tax benefits of $636 (2,035) --
-------- ---------
Net loss (69,016) (103,393)
Dividends on preferred stock, net of gains on repurchases of preferred stock (14,371) (20,105)
-------- ---------
Net loss after deduction of dividends on preferred stock, net of gains on
repurchases of preferred stock $(83,387) $(123,498)
======== =========
Per common share - basic and diluted:
Loss before cumulative effect of change in accounting principle $ (0.37) $ (0.56)
Cumulative effect of changing in accounting principle (0.01) --
-------- ---------
Net loss $ (0.38) $ (0.56)
======== =========
Common shares outstanding - basic and diluted 216,958 219,420
======== =========
Adjusted EBITDA (before restructuring and asset write-down charges):
Site rental and broadcast transmission $104,149 $ 90,665
Network services and other (before corporate development expenses) (7,919) 2,373
-------- ---------
Adjusted EBITDA before corporate development expenses 96,230 93,038
Corporate development (1,620) (2,239)
-------- ---------
Total Adjusted EBITDA $ 94,610 $ 90,799
======== =========
[CROWN CASTLE LOGO] CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
March 31, December 31,
2003 2002
------------ -----------
ASSETS
Current assets:
Cash and cash equivalents $ 476,950 $ 516,172
Receivables, net of allowance for doubtful accounts 132,547 135,864
Short-term investments 78,264 115,697
Inventories 41,216 45,616
Prepaid expenses and other current assets 58,032 53,732
---------- ----------
Total current assets 787,009 867,081
Property and equipment, net of accumulated depreciation 4,796,141 4,828,033
Goodwill 1,050,975 1,067,041
Deferred financing costs and other assets, net of accumulated amortization 124,929 130,446
---------- ----------
$6,759,054 $6,892,601
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 50,744 $ 63,852
Accrued interest 31,229 59,811
Accrued compensation and related benefits 12,632 14,661
Deferred rental revenues and other accrued liabilities 218,168 208,195
Long-term debt, current maturities 19,000 14,250
---------- ----------
Total current liabilities 331,773 360,769
Long-term debt, less current maturities 3,193,277 3,212,710
Other liabilities 184,661 183,227
---------- ----------
Total liabilities 3,709,711 3,756,706
---------- ----------
Minority interests 174,793 171,383
Redeemable preferred stock 751,537 756,014
Stockholders' equity 2,123,013 2,208,498
---------- ----------
$6,759,054 $6,892,601
========== ==========
[CROWN CASTLE LOGO] CROWN CASTLE INTERNATIONAL CORP.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
Three Months Ended
March 31,
---------------------------
2003 2002
---------- ----------
Cash flows from operating activities:
Net loss $(69,016) $(103,393)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation, amortization and accretion 80,357 71,715
Amortization of deferred financing costs and discounts on long-term
Debt 17,488 24,254
Equity in losses (earnings) and write-downs of unconsolidated affiliates 2,453 8,101
Non-cash general and administrative compensation charges 2,431 1,314
Cumulative effect of change in accounting principle 2,035 --
Minority interests 557 (3,698)
Asset write-down charges -- 31,941
Changes in assets and liabilities:
Increase in deferred rental revenues and other liabilities 8,051 28,976
(Increase) decrease in receivables 2,595 (3,879)
Decrease in accrued interest (28,307) (18,041)
Decrease in accounts payable (12,248) (9,940)
Increase in inventories, prepaid expenses and other assets (464) (11,309)
-------- ---------
Net cash provided by operating activities 5,932 16,041
-------- ---------
Cash flows from investing activities:
Maturities of investments 93,496 116,500
Proceeds from disposition of property and equipment 7,472 --
Purchases of investments (56,063) (79,000)
Capital expenditures (52,849) (72,981)
Investments in affiliates and other (250) (2,946)
-------- ---------
Net cash used for investing activities (8,194) (38,427)
-------- ---------
Cash flows from financing activities:
Proceeds from issuance of capital stock 1,055 538
Net borrowings (payments) under revolving credit agreements (22,895) --
Purchases of capital stock (13,558) --
-------- ---------
Net cash provided by (used for) financing activities (35,398) 538
-------- ---------
Effect of exchange rate changes on cash (1,562) (2,736)
-------- ---------
Net decrease in cash and cash equivalents (39,222) (24,584)
Cash and cash equivalents at beginning of period 516,172 804,602
-------- ---------
Cash and cash equivalents at end of period $476,950 $ 780,018
======== =========
Supplemental disclosure of cash flow information:
Interest paid $ 81,415 $ 68,960
Income taxes paid 117 89
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
(in $ thousands)
Quarter Ended 03/31/02
US UK AUS CCIC
Revenues
Site Rental 101,796 53,455 5,013 160,264
Services 43,775 15,945 633 60,353
Total Revenues 145,571 69,400 5,646 220,617
Operating Expenses
Site Rental 35,115 24,717 2,234 62,066
Services 31,185 12,139 401 43,725
Total Operating Expenses 66,299 36,856 2,635 105,790
General & Administrative
Site Rental 4,884 1,388 1,261 7,533
Services 13,916 339 --- 14,255
Total General & Administrative 18,800 1,727 1,261 21,788
Operating Cash Flow
Site Rental 61,798 27,350 1,518 90,665
Services (1,326) 3,467 232 2,373
Total Pre-Overhead Cash Flow 60,472 30,817 1,750 93,038
Corporate Overhead 2,239 --- --- 2,239
Adjusted EBITDA 58,233 30,817 1,750 90,799
Quarter Ended 06/30/02
US UK AUS CCIC
Revenues
Site Rental 103,373 62,409 6,170 171,952
Services 44,069 8,934 576 53,579
Total Revenues 147,442 71,343 6,746 225,531
Operating Expenses
Site Rental 35,622 28,235 2,089 65,946
Services 35,339 10,150 358 45,847
Total Operating Expenses 70,961 38,385 2,447 111,793
General & Administrative
Site Rental 5,574 4,560 1,518 11,652
Services 15,294 1,786 --- 17,080
Total General & Administrative 20,868 6,346 1,518 28,732
Operating Cash Flow
Site Rental 62,177 29,614 2,563 94,354
Services (6,564) (3,002) 218 (9,348)
Total Pre-Overhead Cash Flow 55,613 26,612 2,781 85,006
Corporate Overhead 1,733 --- --- 1,733
Adjusted EBITDA 53,880 26,612 2,781 83,273
Quarter Ended 09/30/02
US UK AUS CCIC
Revenues
Site Rental 104,763 55,230 6,350 166,343
Services 41,228 19,226 627 61,081
Total Revenues 145,991 74,456 6,977 227,424
Operating Expenses
Site Rental 39,707 28,743 2,141 70,591
Services 31,960 15,009 419 47,388
Total Operating Expenses 71,667 43,752 2,560 117,979
General & Administrative
Site Rental 5,037 924 1,328 7,289
Services 13,754 418 --- 14,172
Total General & Administrative 18,791 1,342 1,328 21,461
Operating Cash Flow
Site Rental 60,019 25,563 2,881 88,463
Services (4,486) 3,799 208 (479)
Total Pre-Overhead Cash Flow 55,533 29,362 3,089 87,984
Corporate Overhead 2,060 --- --- 2,060
Adjusted EBITDA 53,473 29,362 3,089 85,924
Quarter Ended 12/31/02
US UK AUS CCIC
Revenues
Site Rental 108,023 65,248 6,009 179,280
Services 27,651 20,372 658 48,681
Total Revenues 135,674 85,620 6,667 227,961
Operating Expenses
Site Rental 37,080 31,888 2,453 71,421
Services 21,914 16,850 451 39,215
Total Operating Expenses 58,994 48,738 2,904 110,636
General & Administrative
Site Rental 4,797 392 1,661 6,850
Services 15,220 171 --- 15,391
Total General & Administrative 20,017 563 1,661 22,241
Operating Cash Flow
Site Rental 66,146 32,968 1,895 101,009
Services (9,483) 3,351 207 (5,925)
Total Pre-Overhead Cash Flow 56,663 36,319 2,102 95,084
Corporate Overhead 1,451 --- --- 1,451
Adjusted EBITDA 55,212 36,319 2,102 93,633
Quarter Ended 3/31/03
US UK AUS CCIC
Revenues
Site Rental 107,849 71,125 5,986 184,960
Services 16,135 14,845 784 31,764
Total Revenues 123,984 85,970 6,770 216,724
Operating Expenses
Site Rental 38,325 32,752 2,283 73,360
Services 11,036 13,331 575 24,942
Total Operating Expenses 49,361 46,083 2,858 98,302
General & Administrative
Site Rental 4,579 1,172 1,700 7,451
Services 14,239 502 --- 14,741
Total General & Administrative 18,818 1,674 1,700 22,192
Operating Cash Flow
Site Rental 64,945 37,201 2,003 104,149
Services (9,140) 1,012 209 (7,919)
Total Pre-Overhead Cash Flow 55,805 38,213 2,212 96,230
Corporate Overhead 1,620 --- --- 1,620
Adjusted EBITDA 54,185 38,213 2,212 94,610
Quarter Ended 03/31/02
US UK AUS CCIC
Gross Margins:
Site Rental 66% 54% 55% 61%
Services 29% 24% 37% 28%
Operating Cash Flow Margins
Site Rental 61% 51% 30% 57%
Services -3% 22% 37% 4%
Adjusted EBITDA Margin 40% 44% 31% 41%
Quarter Ended 06/30/02
US UK AUS CCIC
Gross Margins:
Site Rental 66% 55% 66% 62%
Services 20% -14% 38% 14%
Operating Cash Flow Margins
Site Rental 60% 47% 42% 55%
Services -15% -34% 38% -17%
Adjusted EBITDA Margin 37% 37% 41% 37%
Quarter Ended 09/30/02
US UK AUS CCIC
Gross Margins:
Site Rental 62% 48% 66% 58%
Services 22% 22% 33% 22%
Operating Cash Flow Margins
Site Rental 57% 46% 45% 53%
Services -11% 20% 33% -1%
Adjusted EBITDA Margin 37% 39% 44% 38%
Quarter Ended 12/31/02
US UK AUS CCIC
Gross Margins:
Site Rental 66% 51% 59% 60%
Services 21% 17% 31% 19%
Operating Cash Flow Margins
Site Rental 61% 51% 32% 56%
Services -34% 16% 31% -12%
Adjusted EBITDA Margin 41% 42% 32% 41%
Quarter Ended 3/31/03
US UK AUS CCIC
Gross Margins:
Site Rental 64% 54% 62% 60%
Services 32% 10% 27% 21%
Operating Cash Flow Margins
Site Rental 60% 52% 33% 56%
Services -57% 7% 27% -25%
Adjusted EBITDA Margin 44% 44% 33% 44%
CROWN CASTLE INTERNATIONAL CORP.
Summary Fact Sheet
Restricted and Unrestricted Subsidiaries
(in $ thousands)
Quarter Ended 03/31/02
Crown
Restricted UK Atlantic Other CCIC
Revenues
Site Rental 84,266 53,455 22,543 --- 160,264
Services 37,982 15,945 6,426 --- 60,353
Total Revenues 122,248 69,400 28,969 --- 220,617
Operating Expenses
Site Rental 28,530 24,717 8,819 --- 62,066
Services 28,037 12,139 3,549 --- 43,725
Total Operating Expenses 56,567 36,856 12,368 --- 105,790
General & Administrative
Site Rental 5,586 1,388 559 --- 7,533
Services 12,698 339 1,178 40 14,255
Total General &
Administrative 18,284 1,727 1,737 40 21,788
Operating Cash Flow
Site Rental 50,150 27,350 13,165 --- 90,665
Services (2,753) 3,467 1,699 (40) 2,373
Total Pre-Overhead Cash Flow 47,397 30,817 14,864 (40) 93,038
Corporate Overhead 2,239 --- --- --- 2,239
Adjusted EBITDA 45,158 30,817 14,864 (40) 90,799
Quarter Ended 06/30/02
Crown
Restricted UK Atlantic Other CCIC
Revenues
Site Rental 86,491 62,409 23,052 --- 171,952
Services 38,081 8,934 6,564 --- 53,579
Total Revenues 124,572 71,343 29,616 --- 225,531
Operating Expenses
Site Rental 28,951 28,235 8,760 --- 65,946
Services 31,076 10,150 4,621 --- 45,847
Total Operating Expenses 60,027 38,385 13,381 --- 111,793
General & Administrative
Site Rental 6,787 4,560 305 --- 11,652
Services 14,517 1,786 688 89 17,080
Total General &
Administrative 21,304 6,346 993 89 28,732
Operating Cash Flow
Site Rental 50,753 29,614 13,987 --- 94,354
Services (7,512) (3,002) 1,255 (89) (9,348)
Total Pre-Overhead Cash Flow 43,241 26,612 15,242 (89) 85,006
Corporate Overhead 1,733 --- --- --- 1,733
Adjusted EBITDA 41,508 26,612 15,242 (89) 83,273
Quarter Ended 09/30/02
Crown
Restricted UK Atlantic Other CCIC
Revenues
Site Rental 87,300 55,230 23,813 --- 166,343
Services 34,658 19,226 7,197 --- 61,081
Total Revenues 121,958 74,456 31,010 --- 227,424
Operating Expenses
Site Rental 32,380 28,743 9,468 --- 70,591
Services 29,082 15,009 3,297 --- 47,388
Total Operating Expenses 61,462 43,752 12,765 --- 117,979
General & Administrative
Site Rental 5,943 924 422 7,289
Services 12,356 418 906 492 14,172
Total General &
Administrative 18,299 1,342 1,328 492 21,461
Operating Cash Flow
Site Rental 48,977 25,563 13,923 88,463
Services (6,780) 3,799 2,994 (492) (479)
Total Pre-Overhead Cash Flow 42,197 29,362 16,917 (492) 87,984
Corporate Overhead 2,060 --- --- --- 2,060
Adjusted EBITDA 40,137 29,362 16,917 (492) 85,924
Quarter Ended 12/31/02
Crown
Restricted UK Atlantic Other CCIC
Revenues
Site Rental 89,684 65,248 24,348 --- 179,280
Services 22,663 20,372 5,646 --- 48,681
Total Revenues 112,347 85,620 29,994 --- 227,961
Operating Expenses
Site Rental 29,898 31,888 9,635 --- 71,421
Services 19,991 16,850 2,374 --- 39,215
Total Operating Expenses 49,889 48,738 12,009 --- 110,636
General & Administrative
Site Rental 6,006 392 452 --- 6,850
Services 12,758 171 1,015 1,447 15,391
Total General &
Administrative 18,764 563 1,467 1,447 22,241
Operating Cash Flow
Site Rental 53,780 32,968 14,261 --- 101,009
Services (10,086) 3,351 2,257 (1,447) (5,925)
Total Pre-Overhead Cash Flow 43,694 36,319 16,518 (1,447) 95,084
Corporate Overhead 1,451 --- --- --- 1,451
Adjusted EBITDA 42,243 36,319 16,518 (1,447) 93,633
Quarter Ended 3/31/03
Crown
Restricted UK Atlantic Other CCIC
Revenues
Site Rental 88,885 71,125 24,950 --- 184,960
Services 14,236 14,845 2,683 --- 31,764
Total Revenues 103,121 85,970 27,633 --- 216,724
Operating Expenses
Site Rental 30,887 32,752 9,721 --- 73,360
Services 9,894 13,331 1,717 --- 24,942
Total Operating Expenses 40,781 46,083 11,438 --- 98,302
General & Administrative
Site Rental 5,759 1,172 520 --- 7,451
Services 11,861 502 1,101 1,277 14,741
Total General &
Administrative 17,620 1,674 1,621 1,277 22,192
Operating Cash Flow
Site Rental 52,239 37,201 14,709 --- 104,149
Services (7,519) 1,012 (135) (1,277) (7,919)
Total Pre-Overhead Cash Flow 44,720 38,213 14,574 (1,277) 96,230
Corporate Overhead 1,620 --- --- --- 1,620
Adjusted EBITDA 43,100 38,213 14,574 (1,277) 94,610
Quarter Ended 03/31/02
Crown
Restricted UK Atlantic Other CCIC
Gross Margins:
Site Rental 66% 54% 61% --- 61%
Services 26% 24% 45% --- 28%
Operating Cash Flow Margins
Site Rental 60% 51% 58% --- 57%
Services -7% 22% 26% --- 4%
Adjusted EBITDA Margin 37% 44% 51% N/A 41%
Quarter Ended 06/30/02
Crown
Restricted UK Atlantic Other CCIC
Gross Margins:
Site Rental 67% 55% 62% --- 62%
Services 18% -14% 30% --- 14%
Operating Cash Flow Margins
Site Rental 59% 47% 61% --- 55%
Services -20% -34% 19% --- -17%
Adjusted EBITDA Margin 33% 37% 51% N/A 37%
Quarter Ended 09/30/02
Crown
Restricted UK Atlantic Other CCIC
Gross Margins:
Site Rental 63% 48% 60% --- 58%
Services 16% 22% 54% --- 22%
Operating Cash Flow Margins
Site Rental 56% 46% 58% --- 53%
Services -20% 20% 42% --- -1%
Adjusted EBITDA Margin 33% 39% 55% N/A 38%
Quarter Ended 12/31/02
Crown
Restricted UK Atlantic Other CCIC
Gross Margins:
Site Rental 67% 51% 60% --- 60%
Services 12% 17% 58% --- 19%
Operating Cash Flow Margins
Site Rental 60% 51% 59% --- 56%
Services -45% 16% 40% --- -12%
Adjusted EBITDA Margin 38% 42% 55% N/A 41%
Quarter Ended 3/31/03
Crown
Restricted UK Atlantic Other CCIC
Gross Margins:
Site Rental 65% 54% 61% --- 60%
Services 31% 10% 36% --- 21%
Operating Cash Flow Margins
Site Rental 59% 52% 59% --- 56%
Services -53% 7% -5% --- -25%
Adjusted EBITDA Margin 42% 44% 53% N/A 44%
CCI FACT SHEET Q1 2003
$ in thousands
Q1 `02 Q1 `03 % Change
CCUSA and Crown Atlantic
Site Rental Revenue $101,796 $107,849 6%
Ending Sites 10,713 10,797 1%
CCUK
Site Rental & Broadcast Transmission
Revenue $53,455 $71,125 33%
Ending Sites 3,176 3,428 8%
CCAUS
Site Rental Revenue $5,013 $5,986 19%
Ending Sites 1,402 1,387 -1%
TOTAL CCIC
Site Rental & Broadcast Transmission
Revenue $160,264 $184,960 15%
Ending Sites 15,291 15,612 2%
Ending Cash and Investments $943,981 $555,214
Debt
Bank Debt $1,168,767 $1,069,215
Bonds $2,269,162 $2,143,062
Preferred $302,331 $245,839
Converts $586,265 $505,698
Total Debt $4,326,525 $3,963,814
Leverage Ratios
Net Bank Debt / EBITDA* 0.6X 1.4X
Net Bank Debt + Bonds + Preferred /
EBITDA* 7.7X 7.7X
Total Net Debt / EBITDA* 9.3X 9.0X
*Last Quarter Annualized Adjusted
EBITDA $363,196 $378,440