Crown Castle Inc. · NYSE:CCI

Crown Castle — Crown Castle International — Q3 2008 Earnings Presentation

17 slides from Crown Castle's earnings presentation, Nov 6, 2008

  1. Slide 1: Third Quarter 2008 Earnings Conference Call

    Crown Castle International NYSE: CCI Third Quarter 2008 Earnings Conference Call November 6, 2008 1

  2. Slide 2: Cautionary Information

    Cautionary Information This presentation contains forward-looking statements that are based on management’s current expectations. Such statements include, but are not limited to plans, projections and estimates regarding (i) our results of operations, (ii) the growth of our business, (iii) acquisiti

  3. Slide 3: Q3 2008 Operating Highlights

    Q3 2008 Operating Highlights $ in millions Growth from Q3 2007 to Q3 2008 8% growth 11% growth 23% growth  Site rental business continues strong growth  86% incremental margins $27.2  Recurring Cash Flow per $23.3 $22.7 Share growth of 22% from Q3 ‘07 to Q3 ‘08 Site Rental Site Rental Recurring R

  4. Slide 4: 2009 Growth Outlook

    2009 Growth Outlook $ in millions Projected 2008 to 2009 Growth(1,2)  Outlook does not include benefit FX Impact $16 from acquisitions or interest $11 $10 expense savings from debt FX repayment Adjusted $93 $80 Growth $76  Given the unpredictable nature of our services business, Outlook assumes ap

  5. Slide 5: Discretionary Investments

    Discretionary Investments $ in millions Discretionary Investments(1)  Significantly reduced the capital allocated to new projects  Continue spending to $599 complete existing projects and add new tenants to our towers $150 to $200  Ground lease program to focus on lease extensions Actual Anticipa

  6. Slide 6: Debt Maturity Schedule

    Debt Maturity Schedule $ in millions No significant maturities before February 2011 Debt Maturity Schedule Amount of Indebtedness Maturity $3,450 Revolving Credit Facility $170 January 2009 Trust II Mortgage Loans $294 December 2009 Trust III Mortgage Loans $1,550 February 2011 $1,557 Term Loan $640

  7. Slide 7: Business Rapidly Delevers

    Business Rapidly Delevers $ in billions Illustrative Consolidated Leverage $7 7x 6x  Believe long-term shareholder $6 5x value is enhanced by an 4x $5 $6.0 appropriate level of leverage $5.8 $5.6 $5.3 3x $5.0  Considerations for long-term $4.7 $4 2x leverage levels: Q4:08 Q2:09 Q4:09 Q2:10 Q4:10 Q

  8. Slide 8: Proven Track Record

    Proven Track Record $ in millions Consolidated Leverage Ratio(1) 10.8x 7.0x  Well-positioned in current economic Q2 2002 Q3 2008 climate  Experienced team that has Interest Coverage Ratio(2) 2.6x navigated challenging credit 1.0x markets  Strong balance sheet and significant Q2 2002 Q3 2008 inter

  9. Slide 9: Best Positioned to Capture Future Value from Leasing Growth

    Best Positioned to Capture Future Value from Leasing Growth Common Shares per Tower(1) Equity Capital per Tower(1) (in thousands) ($ in thousands) Crown Castle has fewer shares per tower, so as revenue is added, it is divided among fewer shares. $557 17.1 14.3 11.9 $258 $301 CCI AMT SBAC Impact of a

  10. Slide 10: Non-GAAP and Other Reconciliations

    Non-GAAP and Other Reconciliations Crown Castle International Corp. Third Quarter 2008 Earnings Conference Call Non-GAAP and Other Reconciliations NON-GAAP FINANCIAL MEASURES Certain of Crown Castle's financial releases and broadcast conference calls include presentations or discussions of recurring

  11. Slide 11: Non-GAAP Financial Measures

    Non-GAAP Financial Measures RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO COMPARABLE GAAP FINANCIAL MEASURES Historical Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures: Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarters en

  12. Slide 12: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Leverage ratio for the quarter ended September 30, 2008 are computed as follows: For the Three Months Ended September 30, 2008 Total Debt at Quarter End $6,088,346 Last Quarter Adjusted EBITDA $217,712 Last Quarter Annualized Adjusted EBITDA $870,848 Total Gross Debt / La

  13. Slide 13: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Outlook Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarter ending December 31, 2008, the year ending December 31, 2008 and the year ending December 31,

  14. Slide 14: Other Calculations

    Other Calculations OTHER CALCULATIONS: Sustaining capital expenditures for the quarters ended September 30, 2008 and September 30, 2007 are computed as follows: For the Three Months Ended September 30, 2008 September 30, 2007 (in thousands of dollars) Capital expenditures $ 140,303 $ 66,334 Less: Re

  15. Slide 15: Other Calculations

    Other Calculations Equity Capital Per Tower, Incremental Cash Flow per Share and Incremental Return on Equity Capital for Crown Castle, AMT and SBAC for the three months ended September 30, 2008 are computed as follows: ($ in millions, except per share and per tower amounts) September 30, 2008 Crown

  16. Slide 16: Other Calculations

    Other Calculations Foreign exchange impact on site rental revenue, site rental gross margin (tower gross margin) and Adjusted EBITDA for Crown Castle for the years ending December 31, 2008 and December 31, 2009 are computed as follows: Assumed 2008 AUD/USD exchange rate 0.8441 Assumed 2009 AUD/USD e

  17. Slide 17: Other Calculations

    Other Calculations Leverage ratio and interest coverage ratio for Crown Castle for the quarters ended June 30, 2002 and September 30, 2008 and annualized recurring cash flow for Crown Castle for the quarter ended September 30, 2008 are computed as follows: For the Three Months Ended (in thousands) J

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