Exhibit 99.1
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@easterly.com
Lisa Elliott / lisae@easterly.com
DRG&E
713-529-6600
CROWN CASTLE INTERNATIONAL ELECTS TO REDEEM 10 5/8% BONDS
DUE 2007; RAISES FREE CASH FLOW EXPECTATIONS FOR 2003 AND 2004
May 30, 2003 - HOUSTON, TEXAS - Crown Castle International Corp. (NYSE:CCI)
today announced it has elected to redeem its 10 5/8% Senior Discount Notes due
2007 at the contractual call price of 105.313% of principal. The trustee, The
Bank of New York, will issue a notice of redemption to holders of record and
Crown Castle expects the redemption to occur on or about July 7, 2003. There are
currently approximately $239.2 million of these bonds outstanding and the
redemption of these bonds will result in a reduction of annual cash interest
expense of approximately $25.4 million.
"The redemption of these bonds reflects the flexibility and strength of our
liquidity position and our continued efforts to meaningfully increase free cash
flow," stated John P. Kelly, CEO of Crown Castle. "Pro forma for this
transaction we expect to end 2003 with more than $335 million in cash and cash
equivalents plus approximately $300 million in availability under our senior
credit facilities. As such, we believe additional opportunities remain to reduce
interest expense and increase free cash flow by optimizing our balance sheet,
which we expect will enhance value to our common shareholders."
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
News Release continued:
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and a US dollar to Australian dollar exchange rate of 0.50 US dollars to 1.00
Australian dollar. The following Outlook information contains 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 on the redemption of the 10 5/8% Senior Discount Notes, Crown Castle
has adjusted certain elements of its previously provided financial guidance,
which results in expected net cash provided by operating activities for 2003
increasing from between $160 million to $200 million to between $169 million and
$209 million and expected net cash provided by operating activities for 2004
increasing from between $140 million and $210 million to between $165 million
and $235 million. Further, expected free cash flow for 2003 increased from
between $20 million and $50 million to between $29 million and $59 million for
the full year 2003, and expected free cash flow in 2004 increased from between
$50 million and $80 million to between $75 million and $105 million. The
increase in expected net cash provided by operating activities for 2003 and
expected free cash flow for 2003 reflects the effect of accrued interest on the
date of redemption and the November 15th timing of the semi-annual interest
payment. 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 3/8%, and 11 1/4% Senior Discount Notes and the 12 3/4% Senior
Exchangeable Preferred Stock.
The following table sets forth Crown Castle's current outlook:
(dollars in millions):
Full Year Full Year
2003 2004
--------- ---------
Site rental and broadcast transmission revenue 750 to 765 765 to 820
Net cash provided by operating activities 169 to 209 165 to 235
Capital expenditures 95 to 115 80 to 130
BT site acquisition 33 -
Free cash flow 29 to 59 75 to 105
US site builds (# of sites) 10 to 20 0 to 20
UK site builds (# of sites) 220 to 260 200 to 480
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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.
Cautionary Language Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on our
management's current expectations and are subject to risks, uncertainties and
assumptions. Such statements include, but are not limited to, plans, projections
and estimates regarding (i) the redemption date of the 10 5/8% Senior Discount
Notes, (ii) our ability to increase free cash flow and reduce interest expense,
(iii) cash levels and availability under our credit facilities, (iv) currency
exchange rates, (v) revenues, (vi) net cash provided by operating activities,
(vii) capital expenditures, (viii) free cash flow and (ix) sites to be
constructed.
The forward-looking 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:
o 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.
o If we are unable to service our indebtedness, our indebtedness may be
accelerated.
o Our business depends on the demand for wireless communications, which
has been and may continue to be lower and slower than anticipated.
o The continuation of the current economic and telecommunications
industry slowdown could materially and adversely affect our business
and the business of our customers.
o We may be unable to manage our significant growth.
o The loss, consolidation or financial instability of any of our limited
number of customers could materially decrease revenues.
o Restrictive covenants on our debt instruments may limit our ability to
take actions that may be in our best interests.
o 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.
o Technology changes may significantly reduce the demand for towers and
wireless communications sites.
o 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.
o Carrier consolidation or reduced carrier expansion may significantly
reduce the demand for towers and wireless communication sites.
o Network sharing and other agreements among our customers may act as
alternatives to leasing sites from us.
o Demand for our network services business is very volatile which causes
our network services operating results to vary significantly for any
particular period.
o We may need additional financing for strategic growth opportunities
which may not be available.
o 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.
o 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.
o We could suffer from future claims if radio frequency emissions from
equipment on our sites and towers are demonstrated to cause negative
health effects.
o Our international operations expose us to changes in foreign currency
exchange rates.
o We are heavily dependent on our senior management.
o 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.
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o 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.
o Disputes with customers and suppliers may adversely affect results.
o 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 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 Securities and Exchange
Commission.