Crown Castle Inc. · NYSE:CCI
Crown Castle — Crown Castle International — Q2 2009 Earnings Presentation
20 slides from Crown Castle's earnings presentation, Jul 30, 2009
Slide 1: Second Quarter 2009 Earnings Conference Call
Second Quarter 2009 Earnings Conference Call July 30, 2009
Slide 2: Cautionary Information
Cautionary Information This presentation contains forward-looking statements and information that are based on management’s current expectations. Such statements include, but are not limited to plans, projections, Outlook and estimates regarding (i) the repayment, repurchase or refinancing of our de
Slide 3: Q2 2009 Summary
Q2 2009 Summary ¾ Excellent second quarter results o Site rental revenue exceeded top-end of previously provided Outlook ¾ Disciplined approach to costs. o Site rental opex costs approximately flat o Cash G&A costs down 7% ¾ US application volume in second quarter 2009 up 30% over application activi
Slide 4: Operating Highlights
Operating Highlights $ in millions Site Rental Revenue Site Rental Gross Margin Adjusted EBITDA ($4) FX Impact ($3) ($2) As Reported $349 $376 $235 $263 $213 $247 Q Q2 ‘08 Q Q2 ‘09 9 Q2 ‘08 08 Q Q2 ‘09 9 Q2 ‘08 08 Q Q2 ‘09 9 FX-Adjusted Growth 9% 13% 17% FX-Adjusted $380 $266 $249 FX Impact 4
Slide 5: Operating Highlights (cont'd)
Operating Highlights (cont’d) $ in millions except per share amounts Recurring Cash Flow Recurring Cash Flow / Share ($2) (($0.01)) FX Impact As Reported $119 $132 $0.43 $0.46 Q2 ‘08 08 Q2 ‘09 09 Q2 ‘08 08 Q2 ‘09 09 FX-Adjusted Growth 12% 9% FX-Adjusted $134 $0.47 FX Impact 5
Slide 6: Q3 2009 Outlook
Q3 2009 Outlook $ in millions Site Rental Revenue Site Rental Gross Margin $385 to $268 $354 $390 $327 to $238 $273 $ $215 Q3 ‘07 Q3 ‘08 Q3 ‘09E Q3 ‘07 Q3 ‘08 Q3 ‘09E Reported Results Midpoint of Outlook Issued on 7/29/2009 Adjusted EBITDA Recurring Cash Flow Impacted p byy 2009 refinancings and res
Slide 7: Full Year 2009 Outlook
Full Year 2009 Outlook $ in millions Site Rental Revenue Site Rental Gross Margin $1,520 $1,063 to to $1,286 $1,403 $946 $1,530 $1,073 $843 2007 2008 2009E 2007 2008 2009E Reported Results Midpoint of Outlook Issued on 7/29/2009 Adjusted EBITDA Recurring Cash Flow Impacted p byy 2009 refinancings an
Slide 8: Pro Forma Debt Schedule and Ratios
Pro Forma Debt Schedule and Ratios $ in millions ISSUE Face Amount Final 2007 Crown Castle Operating Company Term Loan $635 4 $635.4 March 5, 5 2014 9% Senior Notes $900.0 January 15, 2015 7.75% Senior Secured Notes Due 2017 $1,200.0 May 1, 2017 6.25% Senior Secured Notes, Series 2009-1, Class A-1 $
Slide 9: Interest Rate Hedges
Interest Rate Hedges $ in millions LIBOR Final Settlement Valuation at (1) (2,3) Hedged Debt Fixed Rate Notional Date 7/27/2009 GSL II $294m Notes 5 14% 5.14% $294 12/15/2009 ($25) Towers LLC $1.9b Notes 5.18% $1,900 6/15/2010 ($124) GSL III $1.55b Notes 5.26% $1,550 2/15/2011 ($73) Towers LLC $1.55
Slide 10: Site Rental Revenue and Total Capex
Site Rental Revenue and Total Capex Site Rental Revenue and Total Capex $ in millions ¾ Continued revenue growth sustained with minimal level of capex ¾ Cash flow has been allocated to retire existing indebtedness $368 $376 $349 $354 $355 Q2:08 Q3:08 Q4:08 Q1:09 Q2:09 Site Rental Revenue Total Capex
Slide 11: $250 million Senior Secured Notes
$250 million Senior Secured Notes Tranche A-1 A-2 Amount ($M) $175 $75 Maturity 10 years 20 years Coupon 6.25% 9.00% Monthly beginning January 2010 Monthly beginning September A Amortization ti ti over 10 years 2019 over 10 years Rating (Moody’s / Fitch) A2 / A- A3 / A- ¾ Weighted average rate of 7.
Slide 12: Pro Forma Debt Maturity Schedule
Pro Forma Debt Maturity Schedule (1) $ in millions (2) $1,704 (3) $1,550 $1,219 $919 $625 $3 $19 $24 $25 $26 $19 2009 2010 2011 2012 2013 2014 2015 2016 2017 2035 2036 (1) Pro forma for issuance of CC Series 2009-1 (2) Anticipated refinance date is in June 2010; amount reflects buybacks (3) Anticipa
Slide 13: Non-GAAP and Other Reconciliations
Non-GAAP and Other Reconciliations Crown Castle International Corp. Second Quarter 2009 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 recurrin
Slide 14: Non-GAAP Financial Measures
Non-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 ended June 30, 2009 and June 30, 2008 are computed p as follows: For the Three Months E
Slide 15: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA and recurring cash flow for the quarters ended September 30, 2008 and September 30, 2007 are computed as follows: For the Three Months Ended (in thousands, thousands except per share amounts) September 30, 30 2008 September 30, 30 2007 Net income (loss) $
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA and recurring cash flow for the years ended December 31, 2008 and December 31, 2007 are computed as follows: For the Twelve Months Ended (in thousands, except per share amounts) December 31, 2008 December 31, 2007 Net income (loss) $ (48,858) $ (222,964) A
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA, recurring cash flow and recurring cash flow per share for the quarter ending September 30, 2009 and the year ending December 31, 2009 are forecasted as follows: Forecast Ranges (in millions, except per share amounts) Q3 2009 Full Year 2009 Net income (los
Slide 18: Other Calculations
Other Calculations OTHER CALCULATIONS: Net debt to Adjusted EBITDA ratios for the quarters ended June 30, 2009, pro forma for the issuance of CC Senior Secured Notes, Series 2009-1 and purchases of Tower Revenue Notes, Series 2005-1, June 30, 2008 and June 30, 2007 are computed as follows: For the T
Slide 19: Other Calculations
Other Calculations Site rental revenue, site rental gross margin (tower gross margin), Adjusted EBITDA, recurring cash flow and recurring cash flow per share change for Crown Castle for the quarters ended June 30, 2009 and June 30, 2008 is computed as follows: For the Three Months Ended (in thousand
Slide 20: Other Calculations
Other Calculations Foreign exchange impact on site rental revenue, site rental gross margin (tower gross margin), Adjusted EBITDA, recurring cash flow and recurring cash flow per share for Crown Castle for the quarter ended June 30, 2009 are computed as follows: Assumed Q2 2008 AUD/USD exchange rate
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