CCI - Earnings call transcript Q4 2017

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Crown Castle International Fourth Quarter 2017 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ben Lowe. Please go ahead.

Benjamin Lowe

Thank you, April, and good morning, everyone. us we joining quarter our for results. XXXX you today review as fourth Thank the morning Crown call Crown on me With this Executive Officer. and Financial Castle's are Officer; Dan Chief Schlanger, Castle's Chief Brown, Jay To aid supplemental the to which section Investors throughout crowncastle.com, have the our at morning. will materials website in of we discussion, the we posted refer call this those uncertainties may forward-looking This which are from risks, will vary certain results actual contain statements, and call and conference to assumptions, expected. materially subject Information Factors potential affect filings. results the about which factors our release SEC is could press the and available company's sections in the Risk of

Our statements we any and to are XXXX, update as made forward-looking statements. January XX, no obligations today, assume of

reconciling supplemental In available company's to measures let addition, turn today's package includes information website of that, me call section call Tables non-GAAP the in at these are discussions of the certain the measures. in over Investors financial With the crowncastle.com. financial Jay. non-GAAP

Jay Brown

morning, joining Thanks, everyone. Ben, Thanks the and us call. for good on

our our XX% long-term our target total As return financial compared generated XXXX solid business XXXX. on of the its Crown We you note, and This to per afternoon, expand investments our the with and across in than months we this is we early lower growth leading off of allowed leading strong of those at quarter increase share with closed per earnings high favorably us contributed Lightower, growth reduce our and line portfolio finished shareholders, dividends customers' our end Castle communications delivering another Further, maturity overall X we by to cost leverage that of returned XX% of terrific to saw assets profile business and largest needs, leveraging We the these investing year a infrastructure the in of capped of on shareholders. ratios, a evolving billion network over sooner to share and S&P our acquisition of for our yesterday our our portfolio that significant results a which release expected, X% generated the to growth financed from in history, the increase assets for focusing while returns and our dividends translating of generated the our to significantly XXX our $XX performance XXXX. capital. in operating an compares expectations. view annual the by growth manner in was

Castle great XXXX, remains As we compelling. story turn Crown the we page on a believe the

returns positioned growth and are investing come. a traverse of that massive us believe We consisting to assets to company of from this have yield the generate benefit position to digital able position, a with we on data Based annual in unique a targeted we near-term value proposition while investors where X% amounts offer X% world, X% networks. for to dividend growth capabilities decades to of

demand organic to with leadership of to investments for customers a greatest markets our XXXX, of portfolio strengthened significantly of as owning U.S. site access our reflect network increasing the to meet by look period FiberNet, Lightower support and top cell in see significant customers. small the our leading strong assets to increasing delivering demand cell fundamental is for we densification. has fiber in data. growth investment operate where customers that These future our belief to communications Our our solutions assets that acquisitions our Wilcon position the capacity infrastructure In we

and top XX approximately per XX,XXX of fiber, route these by is in We belief growth significant now share is Our solutions cell markets informed fiber long-term of to including dividend in significant experience customers decisions building why assets. XX we the metro XX,XXX which our small our small in nodes, miles cell own fiber drive believe will high-capacity these add capital allocation U.S. as the we

We the new extensions quarter. activity site customer agreements and for long-term increased on These included Turning reflect during to term our leasing rental XXXX. outlook existing and revenues adjusted contracted signed to leases. agreements EBITDA X

to continue major to new see increase in saw small fiber in as levels resulting We activity XXXX an that customers of is from increasing cells expected and we XXXX. activity activity leasing solutions investment the leasing towers, in new our compared across

strategy assets, driving in provide to increasing This ahead differentiated data unique growth to already opportunities growth customers cells see is improving additional With in our network customers serve position meet high-bandwidth, multi-location that with traffic Similar we our thereby across to educational we're the fiber years is to investment the institutions. pace portfolio large we small health demand strategy to competitive by assets enterprise, data expected the the As to with rapid opportunity shared XXXX, we economic look our of as of the small such solutions attractive cells annual allows fiber care towers wired drive keep the business. beyond metro industry, and excited in make our to long-term and this across demand, data as assets. our providers we we leverage small the by X double see see serve dense for cell investments model To years, every come. enhance us our underlying fiber wireless to demand. XX% demand expected in growth mobile this level continuing significant

including that growth. applications, underwritten provides vehicles mission-critical Internet anywhere availability will Importantly, technologies based infrastructure network Emerging time extend reality existing our the any require further virtual on XG, any augmented the has development at investments we Things have autonomous applications, of runway and potential to future on device. of or technologies, fiber and the of

hyper cells high-capacity fiber, Castle XX,XXX of high-capacity miles Crown XX,XXX estate With believe position small to in next real provide out and increasingly network unique these trends a more by longer which customers speeds decade, we connected of the of from faster towers and on small term. significantly approximately distributed latency. under lower new is a services, to our Looking route our towers, and dense benefit over contract XX,XXX than we will air rely cells fiber on these expect require

While sharing Uber, that by businesses who fastest and for our trying company. customers emulate our shown parties decades efficiencies have compelling our of delivering the like are returns for lowest driving X resources, financial sharing are cost infrastructure globally companies to the we for across provides multiple time-to-market while

in we value While remain shareholders for the by on positioned consistently for growth delivering the Crown demand to we future, have into focused our dividends. assets our converting Castle

the performance of we returns is future our generate the testament sets our quality to consistently shareholder operating of and assets to and it believe Our company people, ability near-term business, a growth investing apart. while in us and

resulted we XX% a return, in total share compound on creating annual have same doubling since AFFO S&P adopted XX% metric that that per focus shareholders in annual value more growth delivered the Our Over has period, in we of that a for than XXXX. XXX.

Looking opportunity. forward, investment Castle remains Crown a compelling

turn attractive to focused believe data over for are expect to cash of call to consisting that on we flow We shareholders, in decades come. convert growth dividend while and necessary we a returns our into capabilities for I'll to generating the assets investing Dan. are high-quality near-term to with X% X% that, demand And annually, growth grow

Daniel Schlanger

Thanks, Jay, everyone. and good morning,

improving growth reducing the fourth balance Castle acquisitions commitment our assets, flexibility, including share shared our per interest and choice Crown increasing continued shareholders. increased average our investment with underlying on We infrastructure successful on our by leadership leverage. of position debt, managed provider several of and solid dividend reflecting our Wilcon fronts. in the Our a extended business return the in as while We capital rate results quarter for the we maturity Lightower. and punctuated X%, our to proactively average further And to another our in year this very U.S. FiberNet, lowering sheet our our

Slide a items expected compared acquisition included $XX than X. first fourth fourth was $XXX million, the site that site want revenues $XXX been been November would revenues, million, the considered have would $XX results AFFO Lightower should approximately EBITDA prior and in quarter the our out and adjusted I contributed that results to $XXX XXXX closed million outlook, been and walk to have Lightower Turning including not on comparing When that outlook. outlook, through few earlier EBITDA to adjusted X when be million have quarter to respectively. prior Backing would rental incremental Lightower, million, from and AFFO, $XXX rental to contribution million. on

and mentioned earlier. bonuses million ranges these revenues adjusted of agreements impacts adjusted adjusted of benefited outlook were rental for EBITDA not finally, prior site XXXX by were of well revenues, accruals additional within and full And the results Additionally, costs as $XX impacted associated in EBITDA our Jay rental million relating outperformance impact AFFO AFFO. and items, associated approximately site our the considering $X with some annual with straight-line to as approximately XXXX outlook. that EBITDA customer our included provided fourth prior expenses were the and that year When in quarter severance-related from for

XXXX, the in revenues or $XXX contribution X% million rental XX% organic increased as XXXX, approximately full revenues. approximately to rental For year including full site to compared year growth site

forma and invested Moving balance billion perspective, ended in of at activities X which in while full Lightower, continue a turn X.X credit sustaining $XX of improve inclusive a approximately months. the billion past focusing approximately in year. the on quarter's from nearly is capital the for $X approximately sheet We We approximately leverage flexibility during our financial expenditures, investment-grade expenditures. on X.Xx acquisitions capital we From pro our maintaining profile. year contribution to to down investment million $X.X

our extend to reducing maturities We borrowing also proactively continue costs. while

this with under interest on Following term weighted is our years, an our X%. earlier approximately average successful of debt cost bond average offering the remaining month, X.X

capacity billion under available revolving $X approximately facility. of have we borrowing credit Additionally, our

revenues the adjusted agreements Turning We rental approximately to due referenced Jay earlier. with increased outlook site that and revenues for X. $XX the by EBITDA associated our straight-line now to million Slide customer

X. to Turning Slide

from $XXX between XXXX to growth in $XXX revenues expect rental and million XXXX. of million We site

no organic you either contribution in to XXXX. site growth when slide, acquisitions there As contribution changes revenues to the on can outlook, prior compared to the from to are the or rental see the

straight-line Looking the the site in at side, is compared the discussed. to right just prior higher rental approximately which growth revenues higher I revenues expected million when the related is $XX to outlook, far

X. Slide to now Turning

to You can growth see remains million. unchanged $XXX million outlook XXXX at the AFFO $XXX for

questions. per adjusting the at unchanged Lightower share for of the financing for XXXX representing compared when a at As to we remain target in growth excited transactions. very per Castle, dividends on our AFFO XXXX the like share across I'd growth midpoint opportunity the year result, our up, growth XXXX that, flows $X.XX, and generate AFFO also portfolio share. is X% approximately about and the to per asset Crown successful to annual April, open cash wrap related outlook deliver XX% impact call for significant in was to and To a to after X% With

Operator

Instructions]. we'll Flannery hear Simon Morgan first from of [Operator And Stanley.

Simon Flannery

this of if your of got compared wonder signed say, haven't characterize then applications. hood time to last I or get application FirstNet with sort but yet, could any how you the small business us you fiber level anything generally activity say, Obviously, under the And to the on that. are around and to, a the year? into share put, the could there's there, you volumes if appreciate leases cell KPIs guidance the look better

Jay Brown

itself as believe, to mentioned this well play We Simon. Sure, this, and see quarter last I continuing out.

we XXXX the is we we towers, around solutions, at that during small greater the couple January, cells we with came into And so would and year weeks far mean, XXXX. what activity I that As our has they're and this a just of fiber in early year. expect full year than experience consistent look full experienced expectation now we're been days. as into activity

we've seen X activity across all in increase So areas.

Simon Flannery

cetera? Okay. you per of, you've color fiber us do side given in lease-up know can give the in on And some et and the -- I say, the small past. terms cell of the that anything node,

Jay Brown

pace historical Now about our the experience towers. terms seen been to what small twice what for leasing has in be fiber of we've a for of at cells continues

we've of period XX-year adding period of So on tenant over we're have long on at cells. a the were of twice seen that about previously we neighborhood as per about going small tower lease-up for in the time as tower time side, pace and a X

the at pace continuing historically pace on the seen asset economics than So we've and faster directionally, side. the sharing towers we're the to -- see a what of resulting

Daniel Schlanger

for pipeline period. And does on only nodes delivering quarter I'd other small Simon, our little the up creep or add bit as that, thing a even that we continue nodes cell are within is to a certain

board. activity So we're still the across good seeing

Operator

hear of America. of we'll David from Bank Next, Barden

David Barden

is quarter. on what conditions chatter I I quarter, in one guess, the conditions could when maybe guess first some that, of was of kind you the that it look the just are I there into out of, $XXX of if fiber the terms business that long-term relative wondering I and fourth million, guess around cells. Dan talking second, And just terms down new kind like done suggests about industry broke the specifically then contracts' escalators. million Jay, contract to towers, extensions address the the changing got kind you were around last you and history. $XXX think, about I and small to or guide-up and

and you of each we're guide churn that? the of were are contributing was revisit small Is at each towers here and million, think those XXXX? same? that then buckets about you the could I talk kind the roughly half cells how the still looking X $XXX Could and that numbers to the of churn fiber in kind of for balance. And

Jay Brown

Dave. first reasons. specifics Thanks, into going of not your to we're On get we question, for agreements obvious around the these did what

wireless the side, customers. obviously there's four On

So not directly. of directly practice commenting same. the as going to question, your a remained though, our escalations the in extended part of that sort think to I answer we the historical terms, we're of maintain But

talked think not pricing that's pricing pricing the the and environment, about And basis. leases we in showing leases, growth seen, we've or quarters, in we've been escalator amendments new in revenues activity it's I to for broadly, over the environment think, So underlying last base whether environment. contracts, have any leasing the I on on the that the in reflected that several the we've and an change those organic this, seen

Daniel Schlanger

second It's at towers, solutions at at at any. the the fiber and million $XX small new still cells So changed million of between David, towers, fiber your leasing to our question and solutions. breakdown get activity part there, cells haven't million small $XXX $XX of

see, solutions still new on the continue I in leasing digits on that's then into XXXX. ballpark, on On churn we're really be like view X% small and hasn't really So as good on to a pretty is pretty did basis X% our X%. business, and going think board, good we expectation I changed cells, of percentage side, to it's regard would our for the single in about term. prior as it's per-year the and the In that in across translate churn, to the for outlook what a in And or same X% much of outlook. before, upper to good that the we our it's long-term activity towers that activity, either fiber what said to a we revenues. And longer think

David Barden

disclosures? Clearwire, supplemental back kind in that And still major noticed same? one follow-up the -- Okay, that, to you the quarter's related great. PCS. Dan. just churn out that is guys is last that? I still any the in And disclosure the on took changes look we Or at Leap the regarding Can and of

Daniel Schlanger

to disclosed to either there's benefit longer-term reason adds stay network, range time. what real a acquired it continue from changes. for did into that good tower that where don't X% is. lot There any, to major we basis, get acquired of And a in the the increased really, or specific think X% we to what we We churn period last in The range, no was some think out back so it now, we've is of haven't -- change a that to break X% been the but multiyear reason X% networks. is churn to no insight -- where are where try is

Operator

of from Sachs. Next, we'll Brett Feldman Goldman hear

Brett Feldman

to funnel obviously hear It's of the small cell nodes to good that continues grow.

use During your this has a they're and increasingly themselves. customers cases multiple leased we've that solutions they're earnings doing less large indicated fiber, of season, fiber in interested of who's to for looking heard one using deploy they've from lot fiber because

And much fiber reason? that feel indeed, the are why you option. are about than assets right they actually places? fiber, have in a more Or for this are, tenants better how still targeted small you like Could using towards one customers a feel finding some your your very themselves maybe talk solutions? bit cell using confident so it that your you of is is And your you doing

Jay Brown

which would grow as about, some Brett. we've Sure, operators, that other the four cells offerings are small the To goes I question, say heart market believe across some but, of all as they're is in into economic of use own the becomes your Those the to of so side. or question asset not different and parties. we're interested important them the returns increasingly pie, in and I for the where continue use sharing addressable multiple the think solutions seeing various of fiber the to don't so for to some small the comments we just going usage the ways. we portion have here in we on prepared going using market, talked expanding of certainly products perform of self ways, anticipate that the in remarks, and speak, to are really continues carriers the to the multiple that are expect small expand. places across and think in it made is of site for to of my need I densification rapidly We there's that going continues small fiber cells. We're and cells addressable to cells

solutions I providers carriers, provide come have is share perform, fastest on the probably places other we'll because and to we're market the lowest in and of infrastructure and we don't. Our see self And where into time-to-market. experience cost it to their think, carriers top to invest want and it date had that going shown that,

don't I who's carriers in for is big multiple it's and here how fiber market core for talking cells, the the small and the one just believe take-- I saying. need carrier opportunity about that. So There's is to

continue you're that So to use see fiber I small to then like cells. for others in think beyond and us going fiber invest just things

Operator

Deutsche Bank. Matthew of Niknam

Matthew Niknam

two, if Just I could.

First, starting of actually FirstNet about I on for talked FirstNet, one activity. applications think peers see to has your

unchanged. your in last release is mentioned guide night's You

if change think enterprise you or tax customers corporate wireless some comments us of If customers, you've in the your tone year. business you it's on seen from 'XX. side light secondly, high-level just give any customers, how last could maybe in on then on And reform update or or FirstNet wondering could late impact whether just in fiber plans reform, tax

Jay Brown

On believe the our include noted of on commenting impacts I impact turn. We first will ultimately growth remarks be press that we obviously deployed, to mentioned obviously I'll will FirstNet our FirstNet visibility if and what positively question, does our outlook in not that, we the potential we'll release certainly into when the And on could we be. once XXXX. we did for think and that pass we in believe characteristics that it you know. let and update have impacting be know

don't second how the tie tax to reform. I directly it know to question, On

that the what's secular trends network tax about consumer, whether for the or, I in which broadly, activity that's small driving think need going the we're tied to that. the the with talked increasing directly we're those and kind investments. our it's driving to of solutions increase we've by investment. our comments what's expected of X know And driving towers, all that about probably need to leasing increased talk to reform areas, need don't we've see that I usage across we'd we but expecting fiber across to customers certainly is the -- made, cells to more

Operator

Ric Prentiss James has our Raymond question. of next

Richard Prentiss

questions. of couple A

follow-up a on think David's. I

tower, us you help and escalators small mentioned new between with fiber, X you those understand breakdown the of You help -- well. you escalator the leasing activity understand as cells. the did that churn segments? of maybe Can the us different dynamics on Can

Daniel Schlanger

right. do Sure. that. I can All

solutions escalator at about we're generally what is isn't all. generally in on on it's the still On fiber of really And small range is a per-year cells, the the there towers that X% business, looking the half On escalator basis. any at. side,

Richard Prentiss

nice deal I of Okay. would leasing into will And move see the closing the in new with that to activity. then December November, any means expect Lightower earlier, done, XXXX activity

out unchanged, expecting end movement wondering, category? have that the be new maybe and to leasing just newbuild from higher should that of the of Lightower a to Because acquisition guidance So think activity guidance. there we that think, higher change? the will of initial a I end churn we the months could Should now was be X

Jay Brown

Ric. Yes,

the things given attempt were change timing and movement on Our the simple. in to had trying we numbers, that keep the that

just So the our our but through and plan we plan, XXXX for current think disclosure this, and was course of we'll the I year, year to calendar maybe go the as the the plan rethink same. leave

we new we from from 'XX, leave new pieces. would Lightower the in too activity. bucket. of a little leasing XXXX, moving plan. acquired acquisitions that that as simple didn't all in was That current then roll so And over terms for understanding, So have more leasing move thought many into our we the of We streamlined to and was

Richard Prentiss

That makes sense.

I guidance, thought you provided initial be you you 'XX think what Lightower right? would calendar here's anyway, said when

Jay Brown

Correct. That's correct.

Richard Prentiss

escalators the get the carrier something contracts out All question. then one clearly, -- but Okay. wants And was long-term it appreciate sensitivity get to pricing, of not to on or the I right. into it. other

of guys out something You to it. get want

what, make -- table. out came Both understand at sure your sides road have for obviously, us one overbuilding? asks work. or churn? you So And to we any wanted was about of you us should to side, done your to help sure been think potential M&A that of of economics long-term make that down mitigate contracts Just on two of the expect trying potential longer-term would thinking the parties that. achieved the Kind help wanted

Jay Brown

I belief macro sites for look at those several tower macro tower we conversation have sites, seen to you the the is fundamental move. our think decades, when don't as probably, that

over has time in straight-line the site revenues the with rental longer the So we we impact. move associated results are obviously reflected as going of are don't certainly to sites. over and that macro But value uplift term, push which believe, periods escalator extensions, the out long-term the long carriers that to we tower

and leases So near our of assume, to that in that's the value thinking there. doing we the which, committed, value is in tower speed not is gives course, carriers some certainty the driver and macro on little would these it not in be a turn, terms That going type get traded asset creates price given sites of of due extended, to bit big kind for order period that a put on what in sight space run when of long of of or just period time out the figure of used how be roll activity, that's the and that a go to about regardless reduces over and equipment and contract. out the to Around talked we and being that committed time. then site to of term of any line ultimately you long over renewal. into Whether price is them. we've some the going paperwork, value value it's tower some this of that's to of next on some leasing a And more would what's

or in escalations escalators in base contracts. environment and the carried of the We the we so and, leases, right earlier. valuable points the given And case, amendments way at point the to forward thing. back the pricing same go But circumstances the around seen anything to broader this this changing found pricing we're said time haven't in be in new set I'll I'd

Richard Prentiss

the far will, you protected if good is holding moat, as the worried as tower of as not overbuilding. asset, still the about And well

Jay Brown

a the site, network. embedded is period individual -- barriers at this an to stable very we And multiple of renewals are been in for have over has entry a designed multiple of and a long Not extremely The carriers And time. it all. it investment business across becomes into it that once seen high. see part

Operator

Next, Investment we'll Michael Rollins Research. from hear of Citi

Michael Rollins

with you talk organic maybe what bit about into put where now? and growth a for quarter that the see you leasing the the specific industry perspective rate was fourth Could site tower right

Daniel Schlanger

with in quarter fourth X% I The the line is it's around tower what side, industry was on generally and doing. the think

fair that. U.S. assets to then that's in those think activity because, of our XXXX customers carrier of think And as to the I our are we was seeing given demand keep that investing to our portfolio benefit beyond at think is think business assets with that growth just levels and we've continue as end for pace coming. all on ago, about of seeing a at we're I of Jay come And extremely the the that's of from with well with continuing also to customers that out terms that are our to activity try across we increasing reflected and that We these second going we're share our talking positioned demand. characteristics agreements were mentioning, is the the us the our renew this that seen XX,XXX are

Michael Rollins

if just your Is the you to you And grow had the time it things see at business that what's Is kind where and built? hold the capital? biggest and minds, fiber If on of getting may to small relative labor booking? to constraint look of Is sort that in faster? order of the your broader that and for cell back commentary rank get small in what's fiber. it cells small growth to growth the business, it just you cells

Jay Brown

terms that is Well, we're and at the reflected of numbers in the it currently. a with about adding kind talking there's feet, combination market or on networks get would plant to plant. it we happening orders of small have the existing existing X new cycle growth that's tell down constructing up There's go like of the about our go not doesn't go fiber. moment, revenue in I to activity from around to the so you, cells, owned going small to two-year utilize, And the that's in we that fiber us that that's for big you assets running related build whether then we new a it's extent driving additional, that things feels that's it's cells we that leasing fiber seeing growth solutions of cycle think feel really that we've fiber And constrained. fiber the to from into talked have of path if we're related and then XX,XXX have And build don't fast picture, for To that a pretty time a as are mix that built. there. of about we building start for or there's fiber finish. to the us, markets customers I period

some build, that on cycle. making on cells and earlier X-year to we're those Dan And footprint, tenants expeditiously of So continuing for fiber. those then to get which of of some small point the some our around can going existing this was continuing is expand the that's new are pipeline for that's the to continuing fiber we us see a

And leases -- assets benefit to to you're high-level we're step footprint. X, able you'll And future to that own points that it's to the adding and the we're see returns existing to benefit add but far, start really to about you So it point, from that what the growth, which then existing continuing is a is the plan. incrementally by earlier, assets. additional at constraint enough made expand assets, back to going I and then what's revenues as at of if age that takes additional to the building comments time we're in continuing my talk as the biggest we're opportunity the

Operator

Colby of Cowen. Synesael

Colby Synesael

be that sites guess, step-up if the agreements And where in then companies in two is therefore, And included I currently fourth Lightower high-single the that $XXX the pretty $XXX it you're towers digits, benefit, they that at is revenue the to And full new just like assume million we I'm in [indiscernible]? call not on which was leasing actually just secondly, curious you the Or is quarter about the to reside. versus make annualized you guidance already $XXX for included, to your you've guidance saw of of to revenues trying seems correctly. if conservative. long-term quarter, try guidance? million your doing, those signed basis of what an sure should to numbers quarter, opportunity at activity million million additional at XXXX, those business for to or reflected it least, I'm add cell looking it, I your may growing Regarding on $XXX two if that Crown when is million kind $XXX million at look going in, a stated $XXX in be I the

Jay Brown

around comment, first your that our to lease signed again, on the lots into with of we any get hesitant for Colby, customers reasons. specifics agreements we're

to going beg probably to... So off I'm

Colby Synesael

ask you I then? differently Can Because...

Jay Brown

Yes, go ahead.

Colby Synesael

sign Or focused Typically, agreement, that sites? cell is when in amendments you assume additional it holistic current sites? a cell on of typically just

Jay Brown

talking they're interested already be when I as, would certain would a what to to they customers, sense element give and and of speed they're to they network generally, trying of cases, we're is relate speed. then why the of and cost because they the to needs that, of the their where to In what on understand activity clarity network. think clarity is, that describe for of trying have I we're happen what that a and in to more to it would focused trying them doing are where locations then most go the the

I So you to about related new certain levels circumstances commit these, customer again, to tell it's activities want them of don't would talking to it But if to specifically to and be likely be more conversation. that we'd to to to would activity, leasing than a leases. I come us open wanted be amendment the of speak but to new certainly generically,

didn't both. regards math I to again, you've think that what specifics With done we'd open to did we've Lightower, but be to the repeated correctly, about do, I into numbers accurately. or you've want So get we don't given the or

plays how outlook update year we'll and the future and what So on performance is our for based periods. our see then out

Operator

we'll RBC. Next, hear Jonathan of from Atkin

Jonathan Atkin

going say, seeing non-telecom your kind interested So and the back think in just how on activity I growth some -- Lightower secondly, there. the assets that and out to on non-mobile to, side And a Sunesys infrastructure and fiber towers the about of traditional business sort or things. then your for DISH deployment. of are things was opportunities how broader of couple interested thoughts fiber I then or that and going spectrum of on how the the from just was perspectively has and trended in enterprise kind the

Jay Brown

having with DISH, so we're specific and with our question specifically. into talking them. anything the that around Now of tell again, a on second conversations this the talked spectrum. that play in of over been the I line played period I've in and expectations financial broadly, included investment you of out network. what the line back want Lightower of fallow we're of about won't we've of is that's that and the wireless what has talked a go of seen related that you, regards the about or terms morning. of Sunesys first incremental whether any to to what XXXX seen, lying Wilcon, amount levels. have the business There customers, FiberNet, question, activity the churn as that times as to spectrum I line meaningful And around potential to in assets in with outlook various And with On around regards that capital activity haven't get on in with we speak couple look about call out would returns don't we've it Lightower. leasing the been our the at others, hands had expectations owned deployment time users to in our both your with new well the on We've we I

towers. the years, to it's that to deployment where, to but has included spectrum in periods in think fruition of years, time from developed license, XXXX -- some those outlook. We order deployed coming benefit of and our couple the that the we'll in come deployed spectrum in of not here of the maintain spectrum be starts on it's as have that next the of Some to

Daniel Schlanger

technology look no our into much we're to overall theme that the are out, as just what demand And I the the using we're how demand they going talking spectrum, that in network we're seeing position think it And plays the Jon, and take matter as about, plays to can. of more seeing. and using it. advantage meet growth which They're customers in and densifying that to to is

our the So we're you're moving or talking spectrum seeing like specifically, is to and or And else in use newer technologies going about all cell going whether just play looking are DISH, trends out anybody that the densification is more or to benefit. to right direction.

Jonathan Atkin

the on that we vapor discussed then you bit project? a that any last can there And little call, IO. Is on update provide

Jay Brown

part is point To very earlier the Well, some the made with tower we're high-capacity of small push that around connected being cells computing work at continuing by that to edge the a towers the need to I do in and to of trials edge. network. driven the fiber,

So those to things Internet very applications, activities not lot work to of computing the Things we're going small We a locations distributed continuing learn devices the the it's the required to fiber where dense proximity make require going reality, about in only believe it's networks at are of going is to opportunities close high-speed of that and that network. the fiber, cells, order part devices but trial of virtual augmented to see the edge they also from like whether require are the to used, be and reality, power of driver cars, business. effectively latency that autonomous to

that. will the the of work trial our to learning we're continuing and still need infrastructure, we're so in long-term believe be on phase. and a that for We driver So

Operator

hear of MoffettNathanson. we'll Nick Next, from Del Deo

Nicholas Del Deo

happened, $XXX leasing million a Can you of you it looks million midpoint in expectation what anything new like $XXX if activity quarter. some last laid around in quarter the way quarter, should any new detail there's leasing versus in have full was year out if was signed the to might the or give indicated First, bear it we shy in else bit activity related mind? the you third with coming extensions at you

Daniel Schlanger

past Yes. Nick, have periods cleanup-type in see items come typically we just in That includes some the what is nature, that and nonrecurring -- the that of of some happened in -- for the year. like there and the that things year, or quarter fourth every this end things billing didn't some back at in. quarter we

revenues the contribution, organic is what So for everything you that revenues see, XXXX, terms site But reduction. can of same the that the million as overall remaining that's you when otherwise. and leasing look activity site in we at and new have $X in caused both rental growth

off didn't to order impact jumping it the point so impact XXXX guidance. And the in

Nicholas Del Deo

surprises I for able now second, touch or been period of got you've the under Can mean, maybe some And And that you a anything challenges? might short Lightower you didn't about hood. That's have kind Okay, months, whether look observed owned also three talk that encountered retention? expect, can positive you but it. on of you've helpful. or management almost you still time, to

Jay Brown

Sure.

diligence and an through everything as is as well period. as the expectations outlook, line results with we went what from far, So the operating in were our expectation

into didn't the a As business. experience transaction, associated you amount a deal or any with and the team, if at has of any of our know, synergies remember, to when we the bring look the announced would And period we time. get for these team acquisitions we've about each long category tremendous team. talent the this including, a I And put lot of Lightower best of Lightower, a with we into you -- several of build respect fiber able years. just each over assume -- develop and business last insight we questions with a been experience these they've And these but the as over been, the the of done great recently, great acquisitions a transitions. we and as what model have that them most And acquisitions, the not

of we to miles the businesses fiber of And XX,XXX an that have those mix looking that we're brought because across fiber platforms but which are operate fiber there, has revenue companies of being of that so synergy think of from build to grow that we're the just they not planning markets expanded. to they so came opportunity. those be in kind that extraordinary totality here the -- revenue capture able And and we and valuable add the of activity the each from synergies XX,XXX us amount able to those potential the to miles the and and of

So as about XXX talk Crown them why Castle be welcome is moment personally there's opportunity Crown a on us and to opportunity Castle them a for employees to we're to for new at why working to ahead the about to company. great work place of hard the and lot a

and I call they'll I them So them know of us stay glad was we're a certainly build and for morning, probably of time in are this the long the help period business that articulating have a and the that to hope bunch to listening earlier call.

Operator

Cusick JPMorgan Phil of has next our question.

Yong Choe

Then these to I is they follow and And on Richard the long Can were long-term does how pretty to take One, I it have wanted come contracts, up for one-offs? extensions. another Phil. two, follow-up. activity This together? quickly? put together these the

Jay Brown

customer on we're think don't Yes. Richard, comment again, I to specifically agreements. going the

the we're in our constant as expect, they course So develop these of customers, and dialogue, as in things do you conversation. normal each would of with

Yong Choe

showing up business that tower Or that in the services kind little have of should can of what to is bit. future kind Is expect growth picked the of indicative we the forward? is ramp? a guess, I Or going seems more activity then, And tower in-quarter? it

Jay Brown

tied the side is suggesting followed new The leasing XXXX, activity, to business. by slightly as in we're on tower that is up and leasing from business services services Generally, the activity, XXXX. directionally

Operator

Amir Rozwadowski Barclays. of

Amir Rozwadowski

touch I to of order a with prior are self-fulfillment. -- you're of you a to do One, in questions cable providers seen in provide particular, which that in looking as carriers, upon We've that back of working number sort densification. to see one the wanted opportunities or some at around how obviously, fall down co-location expect to you go you necessary does made additional versus opportunity assets mentioned? that of kind need the sort you're the guys that provide backhaul you support future? folks into types traffic have the into And fiber that of the expecting capacity to strong the the banner investments of Do believe very growth you world. that of self-fulfillment can those announcements

Jay Brown

looking self-performing for are number an And and I that's going say would densification. example to speaking the going Amir. using to where scale search a that, and and was what believe have them and find the the of happen to that of deployment it small investment an a would see to of I that of around party that's opportunities small an that's example and the coming site self-fulfillment, cell for you're Sure, cells are cells is of earlier deploy partnerships. around given different carriers I capital, of they're number providing be small example to cells.

Amir Rozwadowski

if one may. I That's And follow-up, then helpful. Okay.

you technology on that assets. I think developments notable color taken pickup any Any that your was leverage or or around can last or any spring could update they provide? in place have summer, there a potential Silicon types how various discussions we're at, Valley there that looking

Jay Brown

cars, in of across efficiencies of Well, utilize the looking virtual business to all virtually a and means their whether cost every by autonomous reality, are mentioned, Things and wireless litany it's finding augmented inside business. industry, people of I Internet that things as

about very necessary we is be deploy we that applications that. latency in can is not to place there's like which most infrastructure the -- And very we provide I is, the just conversations devices people a to use limited that speeds, to parties devices get how that, speeds lower function. so carriers the those a additional their ways to sit have resource; require And to of which and as us infrastructure as want looked In order deploy look on exciting that infrastructure which broadly, figure being infrastructure to try faster for talked infrastructure lower that two accomplish to to more any to ecosystem are where in What's that the latency, we across year ultimately and good for solve and owned, spectrum carriers and that's consumers that required the of they fulfill at, side greater the positioned, out additional can and but continued the spectrum. sits broadened. work spectrum. to have last in with think many And of we're where because our cases,

feel in be to like a are provide we from going So we sit the to kind because of in spot both order those there to towers and consumer. fiber necessary services sweet

Daniel Schlanger

importantly, be fiber We all a the fiber questions we And could from of your side, pretty actions. demand I we're clear it's see existing because is in in differentiator what think add get all for fiber applications the in able don't people don't move U.S. because -- to are. data required around carry deep that's whether is we one to that's of be believe looking there the there our on -- I top do coming, metro is the withstand to to to now the continue to so what's to markets see that wherever dense to think these the they of going that, that going that

about So our we of forward what investment going feel really because looks that. like and it good

Operator

hear Next, Street New we'll Research. from of Kurn Spencer

Spencer Kurn

for small has on thoughts how and Sprint for around your your acquiring. agreements with these two fiber Altice recently view your any impression want infrastructure the impact on -- signed deals potential cells. the to been Cox lease-up that backhaul get their So I to you've just leverage

Jay Brown

are and and a cells co-location it that going to be there's that against I of that. them, and carriers to necessary, do would my are PowerPoint testimony take it infrastructure going use multiple providers self-perform as means small to lot

of by that small exactly across for been the that the So now all all of all going several them. on are going a have it's I things call we've saying be to lot there's cells and markets, carriers years to be testimony think a needed and

Daniel Schlanger

that cell validation that's network. fiber-fed have data also given be to going the to the point preferred this cell the small small moved the method across And a is at

shows, lot in various backhaul, fiber have what to it's we're alternatives. we're in there's work So much I fiber-fed There's all be where will it we'll necessarily. saying, of to the think our to going But to markets of Most take that more always to that that is opportunity. of think, see is go activity. we it too and position, like than at going customers the we Jay want fiber a or we to that get around just up look expect that best lease-up

we most sense where that out try going So true. to be with and we're to customers figure are to make understand our the places not be there working where may

Spencer Kurn

if your Got discussions it. using for you may. follow-up, of infrastructure I many And any one just with wireless customers? broadband Have your around had fixed

Jay Brown

that had have conversation, We yes.

Operator

Tim Horan of Oppenheimer.

Timothy Horan

the difficult of that do network other cable the what edges people market. are saying basically with Just multiple generation guess kind wavelengths they optical support I just guess back the the to arguing the just And companies on want and don't your using the Verizon fiber question that to of they a you they offering serve more unique about a questions how fiber. some separately, of also service I replicate Verizon's or speeds. are lot of of passive they're new services that power they're the have have. uniqueness there's markets. the new also technology talking unique -- against want I argue kind if the infrastructure, that want And guess for at they create that of as to of they to unique curious, wireless structured to have can they They They multiple share. can gain sell for? either kind -- infrastructure, and cable serve And have kind network type market currently conduits? the Verizon's historically, feel, looking it's

Jay Brown

Yes.

of lowest-cost that customers, fast as more well the all as possible. market everywhere and be the to our as, want infrastructure go as I they're solution, of premise is going I fiber business We're States. to think would back our in builder to the it not for the United basic broadly, looking carrier they customers

end a has of a cost -- well and markets. at a very over focused of XX profile in a it technologies on to have customers. in I will With that we've speed kind are top that that as small will tower U.S., of majority we're positioned talked fiber believe And and vast has very on win, time. markets top basis as We've at building We of to the -- XX fiber, provide we significant time, cell regards high-capacity to you for long our very are plants period either side see, XX timely the fiber. low about, cost the been and attractive got investment the at in the the the of side period the of the put on a

the we're in where of be putting we are capacity and that we've ground. then there of achieved it be underwriting, on the And numerous that used a we're get on in, returns great have all So basis lots our and if up company will point that strands to up outcome that of excess we will what for and our putting the and we're in for fiber filled will the the shareholders. fiber

feel we're like coming. for what's I well positioned So

Timothy Horan

a the leasing of Maybe how think Can you a And kind up just we years Jay, to couple compares ago? buildouts XG it just are either original advanced for stage progress a years? we in? compare what similar you will way ramped activity of Do for few a that follow-up. LTE this LTE in

Jay Brown

happened try the what not today, went the In the activity actually be wireless comparison. from the but we that's fill we're in XG, In network. the anything existing, seen sites most additional based saw investments, to the in not XG. and talked required comes of network they're We from we co-location to the the XG about believe that around and the world, world occurred of fundamentally, XG technology of by seeing environment, when cells infrastructure benefit capacity on XG XG-related. additional conversation a was a XG stage any you currently XG underwrote XG it's sites, to if is around in cell adding what we will, we've we've the but to fruition the that densification going our environment, requires XG, in densification different the happened so we're don't small at ultimately the has which sites XG. already and form hardly in XG, activity and we did mean. sites. that's, the envisaged seeing as to capacity of investments ever like macro XG believe Most that's it of of positioned change with we from past. world, very in is fiber existing difficult made. and to additional is some XG from And the on increasing over tower where could least, project what make sites that a any we're we of in on at XG benefit world the XG, overall to to The company tower move We and than If new stairstep the earlier, XG the as just that XG would believe, I compare in that moves the macro really into way benefited applications, a of cells decades that couple same we the small last change increase One,

Operator

of Nispel Brandon KeyBanc.

Brandon Nispel

small standpoint bases another investors customer get the churn. then view you reporting sense certainly it Dan, help and different What business. that it how the go a are and cell also sense essentially I it build. flat I'm could break total it a and up between there's to about macro now, to think a a you're just segment year-over-year from question. CapEx the you if the versus has towers small to if where like in seems over of wondering of the I'm get macro significant better trying fiber mix shift -- the today? makes versus plans on makes to time. spend guided mean, but business -- Verizon do the for investments segmenting It going And on to think small fiber And capital percentage characteristics cells does how maybe future? cells carriers

Daniel Schlanger

asset we fiber. Brandon. I'll asset underlies key Yes. services first towers is that the that and actually start our with the is question. Thanks, to provide, the and The business

do we're we've more revenue date, source cells to around asset multiple up you it's hard else can what because anything the the to which because out deliver small that service once using so done to between what going to fiber. to But that, similar give color And is customers. pretty same is forward up we're and going we break get past break a very easily

we're out, on So to and trying pointed you again leverage that again. what do, as towers, Jay just it infrastructure works so well that

the will believe is activity, done like is churn So breakdown escalators more and continue for we've of we we and to give cell get which see the solutions investors color, and new fiber, don't towers, we to going of each what to now, be is business changing that do associated forward. color this the that actually the appropriate to more revenue, and towers around we with able see. have, small leasing try the to businesses fiber What

Jay Brown

your you question, call, investment, can leasing new on our a the activity. To couple the at we've around times second mentioned of look operating as results,

the period a the be small leasing willing and and activity about to be the time. and there's time that is of expect into one things continue carried you commit about, being to new And year a for of is what $XX cells, both in at expectation is expectation is to XXXX do calendar beyond $XXX I think both across business, long of to towers million activity cells Small going leasing I investment year. XXXX. for leasing give meaningful towers any calendar components we don't of around our about million minimum, want in the our customer but we period New activity continue of XXXX, from point to activity provisions need are for by are the and going pricing on talked the the same are a that talked read coming used the continues. are to to environment, there's more that today long that. future, could pricing agreements carriers on escalation sites to into to terms, The environment about. that We used that and a forward they're them contract year

growth will talked than on being small on So towers. I they activity to rates, we've segments, see the higher cells strong are think both you continue about, as across

Daniel Schlanger

benefits where to a I impact set really as of changes -- if year we've company year, negatively ourselves to good that from business positively or of because think getting one the them. our up portion mix it we're our of doesn't

demand, feel -- get has what that meet to their positioned talking we that So like Castle that's their And that been our however try to I choose to kind spend. of think we unique to Crown a we're put position customers improve about earlier, we're in. networks

Operator

Robert Gutman of Guggenheim.

Robert Gutman

CapEx forward? lower the it year-over-year. And rate that? XX% like going $XXX relatively driving up That's quarter, construction was a stay to will million. elevated and does at saw In Or an XX% elevated What we sequentially to reset fourth level? jump it meaningfully --

Jay Brown

Robert, business to half heavily tends construction that the towards the weighted back year. be of

part in calendar of what expectation. you an you it's year moves tell unreasonable the not quarter-over-quarter XXXX, I So would saw in

look the you how later As with the CapEx The business because just at the is of business, year-over-year generally scale amount would more speaking. move have quarters, do has of I expect business much earlier the bigger and year in to quarters the than to of our activity.

is And As the how to you future a in expect go. you to we'll pipeline of certainly looks that forward, like, see will big and how is activity it's going what periods. on come we we forecast meaningful pipeline and in be built a that see what much going really what as terms to that for to activity of down if update step-up

Robert Gutman

your And underlies like the months seen I've looks that I it that of expense just million. lowered several the now got you've $XX one wondering acquisition you've follow-up. control, by about that. integration was -- I also what noticed acquisition Lightower with and under

Jay Brown

a I of to be was going it in, we XXXX. had XXXX, previously in think all in until portion because when January that's came it weren't of expected we because 'XX closing

So in dollars. change overall no

Operator

We'll UBS. from Levi Batya take of that

Batya Levi

couple quick of a follow-ups. Just

maybe And little maybe in color this more question year? into for budgeting you you're integration. you it total the second a And on on Lightower can if CapEx break buckets. bit First, much provide how could

And that you be you more that fully assets M&A how As procurement, synergy think you take the integrate any do opportunities? look at assets, it cost to opportunities finding the long on might are would maybe best side, to you willing practices? integrate maybe the

Daniel Schlanger

'XX, meet Yes, going And It expand sustaining capital, the versus pipeline fiber really $XXX have on to sustaining We're same done the those. well fiber incorporated it'd of what with building that in to land around a we that is so up to talking Lightower billion said, we've to putting and to earlier, terms be about what historically of of be for be, million will we've CapEx Starting $X.X footprint around purchases because we've been CapEx. new in bit each assets into place the deployments business. conversation. into we've in the in Batya. the be pointed in Jay little neighborhood it XXXX. small cell as going But out with XXXX as solutions majority regard as that and of

Jay Brown

On synergies your some we achieve that the don't are synergies if on We there of us, and asset a synergies, the the opportunity But opportunity think in this call, greatest earlier in to our is revenue question able front. other focus and point, we around time, over that may front find, and believe the really see from I any to around is people. the second synergies really here on start growth cost expand, to at question we integrate we're suppliers that are sources.

synergies going how around cost little to may expect, and grow do that any us there of of conversations recent the With and people, the cost not it's structure. time are take business to invest large digest having on activities regards And we've cost around acquisitions, of the that the focused time, there capture portion find these over is we'd synergies, gained we've some acquired, bit most future to with -- we're the to but really that's us. are Lightower in opportunity to various which significant assets a certainly that people a acquisition. being the over So front we regards there investment, we that

into middle acquisitions As of I integrating done the we've portfolio. in the large the in X XXXX we're that other in mentioned comments,

to time going take it's of little us So bit a digest. to

help everyone performing found the all diligence. in of through deliver want what's the to that Castle. integration assets there share limited also terms dense on excited acquired. store Thanks we how Appreciate another same. in would the know for It to relatively fiber as multiple and high-capacity across with that, worked our so asset I interest think that Appreciate about I urban found. this significant has we think digesting can XXXX don't hard a focused be think short parties. criteria our wrap and us much. that we're set be here, only in Our on markets assets assets. over up morning. the we've glad not are asset remained And Crown Well, the the we far but that we will it on that with employees Obviously, assets with that everyone's we of in to interesting that to I'll going needs we on and and We're think will of where related call what be so went in delivered assets we joining. us. pleased the is be targeted of the results term of line about who thank to We're But that that incredibly to I are to activities going be the the expectations areas,

Operator

participation. today's Thank for conclude your does all conference. That you

disconnect. now may You

Crown Castle (CCI) 25 Jan 182017 Q4 Earnings call transcript